Upgrades

Aditya Birla Capital Limited (ABCL) delivered robust performance on growth as well as asset quality fronts for its lending businesses which resulted in 2.2% RoA for NBFC business and 1.8% RoA for HFC business.

Aditya Birla Capital’s (ABCAP) 2QFY26 consolidated revenue grew 4% YoY to ~INR124.8b, and consolidated PAT (excl. one-off items in 2QFY25) grew ~3% YoY to ~INR8.55b.

Aditya Birla Capital (ABCL) has steadily evolved into a digitally enabled, customer-focused financial services platform with a diversified presence spanning lending, insurance, and asset management.

We met Rakesh Singh (ED and CEO – NBFC) of AB Capital for an update on the company, its NBFC business strategy and outlook, and the recent developments in the sector.

Aditya Birla Capital’s (ABCAP) 1QFY26 consolidated revenue grew 10% YoY to ~INR113b, and consolidated PAT also grew ~10% YoY to ~INR8.35b.

Bajaj Holdings & Investment Limited (BHIL) holds Bajaj Group’s key investments in two flagship companies – Bajaj Auto Limited (BAL – 34.21% stake) and Bajaj Finserv (BFS – 39.03% stake).

We maintain a Buy rating on Bajaj Finserv, with a revised SOTP-based PT of Rs. 2,350 factoring the upside in valuations of its key subsidiaries.

Godrej Industries (GIL) generates major value from its listed subsidiaries and associates viz. Godrej Consumer, Godrej Properties and Godrej Agrovet.

Aditya Birla Capital (ABCAP)’s 1QFY25 consolidated revenue grew 26% YoY to ~INR102b, and consolidated PAT rose 15% YoY to ~INR7.5b.

We maintain BUY on BHIL, with a revised SOTP-based PT of Rs. 10,181, factoring the upside in valuations of its key associate companies.

In Jul’22, as Ms. Vishakha Mulye took charge as MD & CEO, AB Capital Limited (ABCL) reimagined its business model. ABCL has been focusing on building frictionless tech-enabled loan processes and leveraging its group-level ecosystem.

Godrej Industries (GIL) generates major value from its listed subsidiaries and associates viz. Godrej Consumer, Godrej Properties and Godrej Agrovet.

Aditya Birla Capital (ABCAP)’s 4QFY24 consolidated revenue grew 32% YoY
to ~INR121b and consolidated PAT increased 33% YoY to ~INR8.1b.

Godrej Industries (GIL) generates major value from its listed subsidiaries and associates viz. Godrej Consumer, Godrej Properties and Godrej Agrovet. As per I-Sec target prices for Godrej Consumer, Godrej Properties and Godrej Agrovet and 50% holdco discount, GIL’s value works out to INR 764/share.

Godrej Industries (GIL) generates major value from its listed subsidiaries and associates viz. Godrej Consumer, Godrej Properties and Godrej Agrovet. As per I- Sec target prices for Godrej Consumer, Godrej Properties and Godrej Agrovet and 50% holdco discount, GIL’s value works out to Rs731/share.

Aditya Birla Capital’s (ABCL) Q4FY23 earnings reflect acceleration in growth momentum and progressive expansion in NIM trajectory. Overall, consolidated PAT stood at Rs6.1bn, up 35% YoY. RoA of 2.5% / 1.9% in the NBFC / HFC subsidiaries improve visibility on achieving the FY24 guidance ahead of the targeted period.