Aditya Birla Capital Stock Price: Buy Aditya Birla Capital, Target Price Rs 169: ICICI Securities

ICICI Securities has a call to buy on Aditya Birla Capital with a target price of Rs 169. The current market price of Aditya Birla Capital is Rs 118.65. The period given by the analyst is one year when the price of Aditya Birla Capital Ltd. can achieve the set goal.

Aditya Birla Capital Ltd., incorporated in 2007, is a large capitalization company (having a market capitalization of Rs 28499.07 Crore) operating in the NBFC sector.

The main products/income segments of Aditya Birla Capital Ltd. include dividends, income from the sale of stocks and securities and interest for the year ending March 31, 2021.


For the quarter ended 31-12-2021, the company reported consolidated total revenue of Rs 5714.53 Crore, up 1.97% from the last quarter of total revenue of Rs 5604.17 Crore and up by 13.56% compared to the same quarter of last year Total revenue of Rs 5031.97 Crore. The company reported a net profit after tax of Rs 478.68 Crore last quarter.

Investment rationale
Aditya Birla Capital’s (ABCL) journey to bring consolidated return ratios closer to franchise potential over the next three years is on track across the board. ABCL is steadily repositioning its lending business mix towards retail and granular lending (60% of NBFC AUM is aimed at retail + SME + HNI; 35% of HF AUM is geared towards the affordable segment), which which is gradually reflected in a sustained improvement in franchise revenues. The insurance business is steadily building its profitability trajectory – the LI business, despite soft growth, recorded better net VNB margins at 11.2% while the health insurance business remains on track to break even over the next two quarters. The brokerage is holding BUY on ABCL with a TP based on the revised SOTP of INR 157 and initiating a hedge on ABSLAMC with a target price of INR 720 (29x Sep-23 NOPLAT + cash and investments).

Promoter/Fii Holdings
The promoters held 71.03% of the company’s capital as of December 31, 2021, while the FIIs held 6.58% and the DIIs 7.36%.

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