On Monday, Aditya Birla Capital announced its results for the third quarter of the financial year 2025. The company reported a small 4% drop in net profit, which came to Rs 708 crore. Despite this decline, popular brokerage firms, Motilal Oswal and Bank of America (BofA), are still very positive about the stock. They think the stock could rise by as much as 45% and have set target prices as high as Rs 250!
In terms of revenue, AB Cap did well, making Rs 10,949 crore, which is a 10% increase compared to Rs 9,997 crore from the same time last year.
Here’s what the brokerages said regarding AB Cap’s Q3 results:
– Bank of America (BofA): They recommend buying the stock. Their target price is Rs 250, which shows an upside potential of 45.3%. They believe there is strong growth coming from the Aditya Birla Group ecosystem. The company’s Non-Banking Financial Company (NBFC) sector is expanding quickly, especially with Udyog Plus B2B, which has over 2.2 million registrations and a Rs 33 billion+ portfolio. This service provides 25% of unsecured business loans, with half of these coming from the Aditya Birla Group.
– Motilal Oswal: They also recommend buying the stock with a target price of Rs 240, showing an upside potential of 39.5%. They noted that AB Cap is improving its operations and expects growth to pick up in the fourth quarter of this financial year. They predict that from FY24-27, the company’s profits (PAT) will grow 25% per year. They also think that investments in digital services and cross-selling will lead to good returns.
The company’s merger of ABFL into the parent company should be finalized by March 2025.
(Disclaimer: The opinions and views expressed by the experts are their own and do not necessarily represent the views of Thellv.news)
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