Buy AB Capital; target of Rs 200: Emkay Global Financial

Emkay Global Financial is bullish on AB Capital has recommended buy rating on the stock with a target price of Rs 200 in its research report dated May 12, 2023.

Broker Research

May 13, 2023 / 23:06 IST

Buy

26 Aug, 2025 12:21

Volume

Todays L/H

Emkay Global Financial's research report on AB Capital

ABCAP reported a strong set of numbers, with consolidated net income for Q4FY23 at Rs6.09bn (+36% YoY; +15%QoQ). The strong result was driven by solid operating and financial performance across business segments. The lending businesses continued their strong disbursement and loan-book growth, with improving NIM and credit costs delivering improving RoA. The life insurance business had an exceptionally strong year amid a favorable backdrop, while the health insurance franchise continued to build scale with progress on profitability. AMC segment performance was affected by the tough external environment. The Board has approved plans to raise capital up to Rs30bn to fund the company’s growth strategy.

Outlook

This capital raise is largely in line with our expectations, as the strong growth in lending requires capital infusion. With Q4FY23 performance coming on expected lines, we reiterate our BUY rating on the stock, with an unchanged Mar-24E target price of Rs200/share.

For all recommendations report, click here