MOSL: ADITYA BIRLA CAPITAL (Buy)-Robust growth and healthy asset quality intact
Aditya Birla Capital: Robust growth and healthy asset quality intact
(ABCAP IN, Mkt Cap USD5.7b, CMP INR168, TP INR225, 34% Upside, Buy)
- Aditya Birla Capital (ABCL) reported a healthy quarter, with consolidated PBT growing 30% YoY to INR4.1b, but reported PAT increasing 12% YoY due to normalization of tax rate (36% v/s 21% in the year-ago period). Base quarter had a one-off tax gain of ~INR400m.
- NBFC segment: Loan book grew 2%/33% QoQ/YoY to INR398b, driven by 35% YoY growth in 9MFY18 disbursements. The share of mid-corporate loans declined from 17% in 2QFY18 to 15% in the quarter, mainly due to heavy repayments in the structured finance book. RoA/RoE was stable at 1.9%/14.5%, while the GNPL ratio inched up to 0.7% (from 0.5% in 2QFY18).
- AMC segment: While overall AAUM grew 24% YoY to INR2.4t, equity AAUM rose by a stupendous 84% YoY to INR800b. Its share is now 33% v/s 22% in 3QFY17. We expect the increasing share of equity AAUM to drive PAT margin expansion from 10bp in FY17 to 15bp by FY20.
- Others: 1) HFC Loan growth remains robust (+17% QoQ to INR67b); the share of home loans continues to inch up (+300bp YoY to 60%). 2) HFC margins and C/I ratio remain stable at 3%/77%. 3) 13th month persistency (cum.) improved 170bp QoQ to 72.1%. 4) Product mix was stable, with the share of ULIP/PAR/Non-PAR/Protection at 35%/28%/32%/5%.
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.