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Motilal Oswal Reaffirms Buy on Aditya Birla Capital With Rs 340 Target After Sharp Rally

The brokerage cites strengthening asset quality from tighter underwriting as the foundation for sustained growth.

Overview

  • Shares have surged about 72% in six months and roughly 91% since the February 2025 low, lifting valuations yet leaving implied upside to the target.
  • Analysts highlight ABCL’s shift to a diversified, digitally enabled platform under the ‘One ABC’ strategy to boost cross‑sell and cost efficiency.
  • Risk controls include reduced small‑ticket unsecured exposure, with MSME forming 55% of the book, 46% of it secured and only 1.3% small‑ticket unsecured.
  • The amalgamation of Aditya Birla Finance into the parent creates a larger unified NBFC with improved operational and capital flexibility.
  • MOFSL models a consolidated PAT CAGR of about 26% for FY25–27 and RoE near 14% by FY27, with momentum in housing finance and personal and consumer loans.