Aditya Birla Capital Shares At Record High — Should You Buy, Hold Or Sell?

All eleven analysts tracking AB Capital have a 'buy' rating on the stock, as per Bloomberg data.

Aditya Birla Capital stock has risen 24% in the last 12 months and 72% on a year-to-date basis. (Image: Shubhayan Bhattacharya/ NDTV Profit)

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  • Aditya Birla Capital share price reached a record high of Rs 307.8 on the NSE
  • The stock increased 1.2%, marking six consecutive sessions of gains
  • Market capitalisation of Aditya Birla Capital touched Rs 80,000 crore

Aditya Birla Capital Ltd. share price hit a life high of Rs 307.8 on the NSE during early trade on Tuesday. The stock rose 1.2%, marking a sixth consecutive session of advance. The market cap also touched Rs 80,000 crore.

The stock has risen 24% in the last 12 months and 72% on a year-to-date basis.

AB Capital trades at 24 times price-to-earnings and 2.6 times the price-to-book, as per Bloomberg data. The return on asset is 1.3% and return on equity is 11.7%.

Last month, Aditya Birla Capital raised over Rs 4,500 crore via private placement of non-convertible bonds through multiple tranches.

An NCD is a fixed-income instrument that provides structured returns to investors. As NCDs are unsecured and not backed by assets, the market participants evaluate the issuing company's creditworthy and debt-servicing capacity before allotment.

Since AB Capital is a non-banking financial company, it regularly raises capital from the debt market.

In a regulatory filing last week, AB Capital said debt papers worth Rs 1.84 lakh crore have notable investment grade ratings from Moody's affiliate ICRA.

Also Read: Aditya Birla Capital Allots NCDs Worth Rs 3,400 Crore

Analyst Recommendation

All eleven analysts tracking AB Capital have a 'buy' rating on the stock, as per Bloomberg data. The average of 12-month price targets from brokerages is Rs 327, which indicates a potential upside of 7%.

Speaking to NDTV Profit, Vikas Khemani, founder and CIO of Carnelian Asset Management and Advisors, said Aditya Birla Capital offers a more attractive risk-reward profile compared to soon-to-be-listed Tata Capital Ltd.

He said that while Tata Capital is a "strong company", AB Capital stands out in the space for its superior growth prospects and better return on assets (RoA).

“Tata Capital is a good company, but we always look at things from a risk-reward perspective, and in that sense, Aditya Birla Capital has always been our top pick,” he said. “We like the risk-reward profile of this company more as it provides better growth and better return on assets."

Also Read: More Bullish On Aditya Birla Capital Than Tata Capital, Says Vikas Khemani

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WRITTEN BY
Shubhayan Bhattacharya
Shubhayan covers markets and business news at NDTV Profit. He has a keen in... more
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