Aditya Birla Capital Is Well-Positioned To Achieve The Next Phase Of Growth, Says Motilal Oswal; Maintains Buy

In recent quarters, Aditya Birla Capital has implemented several strategic initiatives, including tightening underwriting standards, deliberately reducing exposure to small-ticket loans, and recalibrating digital partnerships in its personal and consumer loans segment. These measures have helped it maintain asset quality, which is significantly stronger than that of its peers.

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Motilal Oswal Report

Aditya Birla Capital Ltd. continues to demonstrate healthy growth in its core businesses, NBFC, housing finance, asset management, and life and health insurance, supported by improving profitability, operational leverage, and strong customer acquisition momentum.

Its ‘One ABC' strategy enhances cross-selling opportunities, increases wallet share, and improves cost efficiency. Its focus on digital transformation and expansion of distribution reach should also support long-term growth.

We estimate a consolidated PAT (pre-MI) CAGR of ~26% over FY25-27. 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 our Buy rating with an SoTP (Mar'27E)-based target price of Rs 340.

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