Buy Aditya Birla Capital, target price Rs 155: HDFC Securities

HDFC Securities has buy call on Aditya Birla Capital with a target price of Rs 155. The current market price of Aditya Birla Capital Ltd. is Rs 130.7.

Aditya Birla Capital Ltd., incorporated in the year 2007, is a Large Cap company (having a market cap of Rs 32192.00 Crore) operating in NBFC sector.

Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 5031.97 Crore, up 9.48 % from last quarter Total Income of Rs 4596.13 Crore and up 16.24 % from last year same quarter Total Income of Rs 4329.05 Crore. Company reported net profit after tax of Rs 208.18 Crore in latest quarter.

Investment Rationale
The brokerage initiates a BUY and an SOTP-based target price of INR155 - it values the AMC business at INR240bn (7.2% of Mar’23 AUM) and the NBFC business at INR170bn (1.85x Mar’23 ABVPS).

Promoter/FII Holdings
Promoters held 70.5 per cent stake in the company as of Dec 30, 2020, while FIIs held 6.3 per cent, DIIs 8.4 per cent and public and others 14.9 per cent.