Aditya Birla Capital Ltd has demonstrated solid performance, achieving strong growth in the loan book while maintaining asset quality. Buy for target price of ₹280 (37% upside): SBI Securities

Reiterate BUY with Price Target Rs 280/-

The company has demonstrated solid performance, achieving strong growth in the loan book while maintaining asset quality. Management has reiterated its guidance on both growth and credit cost fronts. We expect the lending businesses both Aditya Birla Finance Ltd. & Aditya Birla Housing Finance Ltd. to grow at 30% in FY25E & FY26E, for Aditya Birla Sun Life AMC Ltd., we expect 12-15% growth in AUM in FY25E & FY26E and for Life insurance business, we expect top-line growth at 20%+ CAGR over the next 2 years and steady VNB margin at 18%-20% range for the next 2 years. We maintain a buy rating on the company, We value the stock at Rs 280 on a SOTP basis. We have valued the NBFC at 2.0x of its FY26E BV, HFC at 1.8x of its FY26E BV, AMC business at 20x FY26E EPS, ABSLIC at 1.8x of FY24 EV, health insurance is valued based on recent deal value and other companies at 1x current Market cap.

Aditya Birla Capital Ltd-2QFY25 Results Update