Motilal Oswal Financial Services has reiterated its Buy rating on Aditya Birla Capital while raising the target price to ₹325 from ₹250. The brokerage cited resilient asset quality despite peer group weakness and a strong earnings growth trajectory as key positives.
While the net interest margin (NIM) in the NBFC segment contracted during the quarter, management remains optimistic about margin recovery in the coming quarters, supported by a favorable product mix.
Motilal Oswal expects a consolidated profit after tax CAGR of approximately 24% over FY25–FY27. Additionally, it forecasts a consolidated return on equity (RoE) of around 14% by FY27.
The brokerage highlighted that Aditya Birla Capital has defied sectoral trends and continues to maintain solid fundamentals, warranting an upward revision in valuation.
Disclaimer: The views and recommendations in this article are those of Motilal Oswal and do not represent the opinion of this publication. Investors are advised to consult their financial advisors before making any investment decisions.
