Motilal Oswal has given Buy recommendation for Aditya Birla Capital with a target price of Rs. 140 in its research report issued on Feb 06, 2021

Motilal Oswal’s research report on Aditya Birla Capital

PAT grew 15% YoY to INR2.9b in 3QFY21, led by healthy performance in the HFC and AMC segments. However, the same was offset by muted performance in the NBFC segment. In 9MFY21, PAT has been largely flat at INR7.5b.  The Lending business witnessed healthy business recovery with total disbursements (including HFC) jumping 18% YoY to INR51b. The company restructured 1.9% of its loan book (including Housing Finance).

Outlook

We expect consolidated PAT to grow at 26% CAGR over FY20-23E (off a lower base). As most business segments have gained scale and are highly profitable, there could be value-unlocking opportunities in the medium term. Buy with a TP of INR140 (FY23E SoTP-based).

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