AB Capital share price jumps over 3% after Macquarie initiates coverage

Shares of Aditya Birla Capital surged nearly 5% today, 3rd April,  after Macquarie has initiated an Outperform rating with a target price of Rs 230.

The brokerage firm said that the company is poised to show strong growth in earnings and loans.

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Growth to be led by Lending and savings business. Strong parentage and AAA rating providing access to competitive funding. Diversified product suite and distribution mix avoiding concentration risk. Believes SME segment to show strong >30 per cent AUM CAGR over the next 3 years. Value unlocking in NBFC and Insurance business. Has potential to double in 3 years, not widely covered by street –  Macquarie said.

As of 10:06 am the shares were trading 5.17% higher at ₹191.25 on NSE. 

Aditya Birla Capital Ltd (Aditya Birla Capital), a subsidiary of Grasim Industries Ltd, is a provider of financing and advisory solutions. Its retail offerings include life, health, motor, and travel insurance coverage; financing solutions, which consist of home, personal, SME, real estate, and loan against securities financing; investment management solutions; wealth and portfolio management; pension funds; and securities and stocks, among others.

The company’s corporate products and services comprise corporate finance; loan syndication; private equity; mutual funds; insurance solutions such as group life, group health, and corporate general insurance; real estate finance; stocks and securities, among others.