Table of Contents
1. About the Company
ABCapital Share Price Target from 2024 to 2030.
Aditya Birla Capital Limited (ABCL) is a prominent financial services provider in India, part of the Aditya Birla Group, which is a conglomerate with a global presence in various sectors.
Established in 2007, ABCL offers a diverse range of financial solutions, including asset management, life insurance, health insurance, housing finance, and non-banking financial services (NBFC).
The company aims to provide comprehensive financial solutions to its clients through its extensive distribution network and customer-centric approach.
ABCL operates with a vision to be a leading player in the financial services space, leveraging technology and innovation to enhance customer experience.
The company is committed to sustainable growth and has made significant investments in digital transformation to streamline operations and improve service delivery.
2. Products
Aditya Birla Capital’s product offerings are segmented into several key areas:
- Non-Banking Financial Services (NBFC): ABCL’s NBFC arm provides personal loans, business loans, and vehicle loans. The company has reported substantial growth in its loan book, driven by an increase in retail and SME lending. The focus on secured loans has improved asset quality metrics.
- Housing Finance: The housing finance segment has seen robust growth, supported by government initiatives such as the Pradhan Mantri Awas Yojana (PMAY). ABCL offers home loans with competitive interest rates and flexible repayment options.
- Asset Management Company (AMC): Aditya Birla Sun Life Asset Management Company provides a wide range of mutual funds catering to various investment needs. The AMC has witnessed significant growth in assets under management (AUM), bolstered by strong inflows into systematic investment plans (SIPs).
- Life Insurance: Aditya Birla Sun Life Insurance offers a variety of life insurance products, including term plans, endowment plans, and ULIPs. The company has maintained a strong persistency ratio and has seen an increase in first-year premium collections.
- Health Insurance: The health insurance division has expanded its product portfolio to include comprehensive health plans that cater to individual and family needs. The market share among standalone health insurers has improved significantly.
Detailed Analysis of Products
| Product Category | Key Features | Recent Growth | Market Position |
|---|---|---|---|
| NBFC | Personal loans, business loans | Loan book grew ~23% YoY | Strong focus on secured lending |
| Housing Finance | Home loans with flexible terms | Disbursements increased by 113% YoY | Benefiting from government schemes |
| AMC | Diverse mutual fund offerings | QAAUM rose 23% YoY | Leading player in SIP inflows |
| Life Insurance | Comprehensive life cover options | Individual FYP grew 33% YoY | Stable persistency ratio |
| Health Insurance | Family floater and individual plans | GWP grew 39% YoY | Improved market share |
3. Results and Performance
Key Financial Information
ABCapital Share Price Target from 2024 to 2030.
The financial performance of Aditya Birla Capital Limited (ABCL) has shown significant growth across various segments. Below is a detailed breakdown of the key financial metrics, including Profit Before Tax (PBT) and Profit After Tax (PAT), along with their respective contributions from different business segments.
Consolidated Profit Before Tax (PBT) Breakdown
| Segment | FY24 (INR Crores) | FY25E (INR Crores) | FY26E (INR Crores) |
|---|---|---|---|
| Non-Banking Financial Company (NBFC) | 29,900 | 38,700 | 44,800 |
| Housing Finance | 3,800 | 5,200 | 7,500 |
| Asset Management Company (AMC) | 10,100 | 12,200 | 13,800 |
| Life Insurance | 2,000 | 2,200 | 2,500 |
| Health Insurance | -1,900 | -1,500 | -1,000 |
| Other Businesses | 1,400 | 2,500 | 2,600 |
| Consolidation Adjustments | -5,400 | -4,400 | -3,400 |
| Consolidated PBT | 39,700 | 54,800 | 66,600 |
- The NBFC segment is the largest contributor to PBT, reflecting strong growth in personal and SME loans.
- Housing finance has shown robust growth due to increased disbursements and market demand.
- The AMC segment has benefited from higher average assets under management (AUM), leading to increased profitability.
- Life insurance continues to perform steadily with a positive trend in first-year premiums.
- Health insurance is currently underperforming but is expected to improve as the market stabilizes.
Consolidated Profit After Tax (PAT)
| Metric | FY24 (INR Crores) | FY25E (INR Crores) | FY26E (INR Crores) |
|---|---|---|---|
| Consolidated PAT | 33,300 | 36,700 | 42,700 |
| Growth Rate (%) | -30.5 | +10.1 | +16.2 |
- The consolidated PAT reflects a significant drop in FY24 due to one-time adjustments but is expected to recover in subsequent years.
Return on Equity (RoE)
| Year | FY24 (%) | FY25E (%) | FY26E (%) |
|---|---|---|---|
| RoE | 11.2 | 12.9 | 13.4 |
- The RoE is projected to improve as profitability increases and capital efficiency is optimized.
Earnings Valuation Metrics
| Metric | FY24 | FY25E | FY26E |
|---|---|---|---|
| Consolidated PE Ratio | 21.2 | 15.2 | 13.1 |
| Consolidated PB Ratio | 2.1 | 1.9 | 1.6 |
- The decline in the PE ratio suggests that the stock may be undervalued relative to its earnings growth potential.
Summary of Key Financial Metrics
- Consolidated PBT for FY24: INR 39.7 billion
- Consolidated PAT for FY24: INR 33.3 billion
- Expected CAGR for PAT from FY24 to FY27: Approximately 26%
- Current Market Capitalization: INR 561.1 billion
- 52-week stock price range: INR 155 – INR 247
This detailed financial breakdown highlights Aditya Birla Capital’s robust performance across its business segments and provides insight into its future growth potential and valuation metrics.
The company reported a consolidated revenue growth of 36% YoY for Q2 FY25, with PAT increasing by 42% YoY to approximately INR 10 billion. This performance reflects strong operational metrics across its key businesses.
4. Aditya Birla Capital Limited (ABCAPITAL) Stock Performance:
52-Week Stock Summary
As of December 20, 2024, Aditya Birla Capital Limited (ABCAPITAL) has experienced the following 52-week range in its share price:
- 52-Week High: ₹246.90
- 52-Week Low: ₹155.00
The stock performance of Aditya Birla Capital over the past year indicates volatility but also potential for recovery:
5. Share Price Targets
Projected share price targets for Aditya Birla Capital for ABCapital Share Price Target from 2024 to 2030 are outlined below:
| Year | Target Price (INR) | Reason for Upside |
|---|---|---|
| ABCapital Share Price Target 2024 | 270 | Expected growth in AUM and profitability |
| ABCapital Share Price Target 2025 | 300 | Continued expansion in housing finance |
| ABCapital Share Price Target 2026 | 350 | Increased market share in insurance |
| ABCapital Share Price Target 2027 | 400 | Strong performance in asset management |
| ABCapital Share Price Target 2028 | 450 | Sustained growth across all segments |
| ABCapital Share Price Target 2029 | 500 | Digital transformation yielding results |
| ABCapital Share Price Target 2030 | 600 | Robust economic conditions |
| ABCapital Share Price Target 2035 | 800 | Leadership position in financial services |
| ABCapital Share Price Target 2040 | 1000 | Diversification into new markets |
6. Key Management Personnel
ABCL’s management team comprises seasoned professionals with diverse expertise:
- Kumar Mangalam Birla – Chairman
- Ajay Srinivasan – CEO
- Vikram Sethi – CFO
- Manoj Nambiar – CEO of Aditya Birla Finance Ltd.
Their strategic leadership is pivotal for driving the company’s vision and operational excellence.
7. Management Commentary
The management remains optimistic about future growth prospects. They emphasize the importance of digital initiatives and customer-centric strategies that have been instrumental in enhancing operational efficiencies. The focus on cross-selling products across different segments is expected to yield significant benefits moving forward.
8. Dividend History
Aditya Birla Capital Ltd. has not given any dividends since Jan 1, 2000.
Corporate Action History
ABCL has undertaken several corporate actions recently:
- June 2023: Raised INR30 billion through equity capital.
- October 2024: Sold stake in Aditya Birla Insurance Brokers for INR2 billion.
These actions reflect the company’s proactive approach to capital management.
9. Key Conference Points
During recent investor calls, management highlighted:
- Strong loan disbursement growth across segments.
- Focus on improving asset quality through secured lending.
- Plans for further digital integration to enhance customer experience.
10. Top Shareholders
The top shareholders of Aditya Birla Capital are as follows as on 30.09.2024:
| Shareholder Name | Percentage Holding (%) |
|---|---|
| Aditya Birla Group | 68.90 |
| Domestic Institutional Investors (DII) | 8.50 |
| Foreign Institutional Investors (FII) | 11.10 |
| Others | 11.50 |
This stable shareholding pattern indicates confidence from institutional investors.
11. FAQs
- What is Aditya Birla Capital’s primary business?
- ABCL primarily operates in financial services including NBFC, housing finance, insurance, and asset management.
- How has ABCL performed financially?
- The company reported significant revenue and profit growth over recent quarters.
- What are the future prospects for ABCL?
- With ongoing digital transformation and expansion strategies, ABCL is well-positioned for future growth.
- What dividends does ABCL offer?
- ABCL has consistently paid dividends over the years, with an expected increase in FY24.
- Who are the major shareholders?
- Major shareholders include the Aditya Birla Group and various institutional investors.
- What is the target price for ABCL shares?
- Analysts project a target price of INR270 for FY24 based on expected growth.
- How does ABCL manage risk?
- The company focuses on secured lending which helps mitigate credit risk.
- What innovations is ABCL pursuing?
- ABCL is investing heavily in digital platforms to enhance customer engagement and operational efficiency.
- What role does leadership play at ABCL?
- Experienced leadership drives strategic initiatives that align with market opportunities.
- How does ABCL support sustainability?
- The company integrates sustainable practices within its operations to promote long-term growth.
You may also like to to read
What is IDCW in Mutual Funds ?
Apollo Hospital Share Price Target from 2024 to 2030
Grasim Share Price Target from 2024 to 2030
Disclaimer: No content on this website should be treated as investment advice. All the content offered on the website is for informational purposes only. Please contact your adviser before making an investment.