Aditya Birla Finance (NBFC) aims to increase the share of P&C loans to ~18-20% over the medium term and would also like to gradually start re-growing its unsecured businesses.
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Motilal Oswal Report
Aditya Birla Capital Ltd. continued to exhibit an improvement in operational metrics in Q3 FY25. Q4 FY25 will see an uptick in growth, benign credit costs, and better return ratios across businesses.
We expect a consolidated PAT CAGR of ~25% over FY24-27E. The thrust on cross-selling, investments in digital, and leveraging ‘One ABC’ will lead to healthy return ratios, even as we build in a consolidated RoE of ~14% by FY27. Reiterate Buy with an unchanged SoTP (Sep’26E)-based target price of Rs 240.
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