MOSL: ADITYA BIRLA CAPITAL (Buy)-Growth slows down across segments
ADITYA BIRLA CAPITAL: Growth slows down across segments
(ABCAP IN, Mkt Cap USD2.6b, CMP INR85, TP INR110, 30% Upside, Buy)
- 2QFY20 consol. PBT grew 31% YoY to INR3.7b, while consol. PAT grew 37% YoY to INR2.6b due to a lower tax rate.
- NBFC: Company continues to run down its lending book, it was down 4% QoQ (flat YoY) to INR483b. Margins improved 70bp YoY to 5.3% as the company increased the share of retail and SME loans (up 300bp YoY to 54%). The company continues to grow its 'digital and unsecured' book, the share of which increased 250bp YoY to 8.5%. GNPL ratio increased 15bp QoQ to 1.85%; however, PCR declined 500bp to 33%. Management has guided for 15-20bp increase in the GNPL ratio in 3QFY20. In 1HFY20, RoA/RoE of this segment (excluding one-time DTA impact of INR550m) was 2.2%/15%.
- AMC: ABCAP has managed to maintain its overall share at ~10.5%. However, equity AAUM declined 4% QoQ to INR885b as the company lost some market share. PBT margin increased 5bp YoY to 27bp, leading to 18% YoY growth in PBT to INR1.75b.
Aditya Birla Capital Ltd. Aditya Birla Capital Limited, formerly Aditya Birla Financial Services Limited, is an investment company. The Company, through its subsidiaries, provides financing, investment, protection and advisory services to its customers and clients. Its financing services include lending, financing and wealth management solutions, customized solutions in areas of personal and business loans, corporate finance, mortgages, capital market based lending, housing finance solutions such as home loans, home improvement and construction loans. Its investment services include asset management services, investment solutions, portfolio management services, investment advisory services and securities broking. Its protection services include protection solutions, children's future solutions, wealth with protection solutions, health and wellness solution, and health insurance. Its advisory services include insurance broking and risk advisory solutions to companies and individuals.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.