The analysts at the SBI Securities are bullish on Aditya Birla Capital Ltd (ABCL) and see an upside potential of 26 percent for the NBFC stock.
The counter of the non-banking financial company (NBFC) has delivered multi-bagger returns of 100.36 percent in the last two years, as per BSE data. It rose 123.83 per cent in the last three years.
Aditya Birla Capital Limited (ABCL) is a diversified financial services group that operates in various businesses including non-banking finance, housing finance, life insurance, standalone health insurance, asset management, stock and securities broking, wealth services and asset reconstruction.
The domestic brokerage has a 'BUY' rating, recommending a share price target of Rs 280 per share with 26 percent upside potential.
ABCL has been prioritising creating seamless, technology-driven loan processes by utilising its group-level ecosystem. For the lending business, the company has guided a roadmap for doubling FY23 AUM in Aditya Birla Finance and Aditya Birla Housing by FY26E, the report stated.
Aditya Birla Housing Finance is experiencing strong momentum in disbursals and loan book growth, leading to an increase in market share, it added.
The demand for housing continues to remain very strong in India and the recently announced measures by the government such as expansion of PMAY and investments in affordable urban housing will create ample opportunities in the housing finance sector.
It reported a net profit of Rs 758 crore for the first quarter of fiscal year 2025, 17 percent jump in its net profit on a year-on-year basis compared to Rs 649 crore last year.
Sales of the company rose 25.37 percent to Rs 8,832 crore in the quarter ended June 2024 as against Rs 7,044 crore during the previous quarter ended June 2023.
In Friday's trade, the scrip was trading flat at Rs 221.24 on the NSE, down marginally by 0.91 percent.
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