Morgan Stanley raised AB Capital’s stock from “equal-weight” to “overweight” and set a target price of Rs 247 per share, indicating an upside potential of more than 40 percent from present levels. As a result, shares of AB Capital increased more than 2 percent to Rs 172 per share on January 13. The benchmark Nifty 50 index has dropped 7% over the last three months, while AB Capital’s shares have dropped more than 21%. The stock had peaked on June 20, 2024, at Rs 246 after 52 weeks.
The brokerage stated that it anticipates the company’s assets under management (AUM) to increase at a strong compound annual growth rate (CAGR) of 20% between FY24 and FY27. The non-banking financial company (NBFC) division of Aditya Birla Capital is anticipated to generate a return on equity (ROE) of more than 15% by FY27, with an EPS CAGR of 18% predicted for the same time frame.
These forecasts demonstrate the company’s ability to provide steady financial results over the ensuing years. One of Aditya Birla Capital’s main advantages, according to Morgan Stanley, is its robust finance sources, which come from its affiliation with the Aditya Birla Group. This gives the business a significant edge in the cutthroat financial industry.
Aditya Birla Capital share price
Aditya Birla Capital is up 2.03% from its previous closing price, trading at Rs 171.00. Price-wise, Aditya Birla Capital has been moving between 173.45 and 168.70. In the past five days, Aditya Birla Capital has returned -9.12% and -5.73% so far this year. The sector’s TTM P/E ratio is 14.78, whereas Aditya Birla Capital’s is 16.86.Coverage of Aditya Birla Capital has been started by nine analysts.
About the Company – Aditya Birla Capital
Aditya Birla Financial Services Limited (ABFSL), formerly known as Aditya Birla Capital Limited (ABCL), was established on October 15, 2007. A majority stake in the company is held by Grasim Industries Limited. The business and its affiliates are well-represented in a number of industries, including asset management, general insurance broking, wealth management, online personal finance management, pension fund management, life and health insurance, housing finance, private equity, and non-banking financial companies (NBFCs). An Asset Reconstruction Company license has been granted to the company by the Reserve Bank of India (RBI).
