Complete Turnaround For Aditya Birla Capital

CMP: 146 ( Add in Two parts 50% CMP and Rest at % @120 With View for 220-240 in 2 Years)

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Aditya Birla Capital’s (ABCL) Q3FY23 earnings reflect acceleration in growth momentum and progressive expansion in NIM trajectory. Overall, consolidated PAT (excluding fair value and stake sale gains) of Rs5.3bn (up 27% YoY) was above our estimate of Rs5.1bn. RoA of 2.4%/ 1.9% in the NBFC/ HFC subsidiaries improve visibility on achieving the FY24 guidance ahead of the targeted period. Moreover, as a strategic initiative, ABCL is creating an omni-channel D2C platform to serve its existing customers and acquire new customers in a seamless manner; the Board has approved formation of a separate wholly-owned subsidiary for this purpose. Vishakha Mulye (ex-ED, ICICI Bank) has joined as the CEO w.e.f. 1 st Jun’22. Ms. Mulye is driving the group’s existing structural strategy with focused execution and furtheraccelerated momentum. ABCL aims to build scale with emphasis on customer acquisition through direct channels and partnerships, and deepen penetration with wider presence. It has adopted a strategy named ‘ONE ABC, ONE P&L’, which has three tenets: ONE experience, ONE customer, ONE team. ABCL will leverage technology and analytics and drive synergies across the group ecosystem through cross-sell and upsell, which will contribute to the bottomline. Eventually, all this will help boost the company’s RoA/ RoE profile, in our view

Consistent Sales, Profit Growth and Management Reig Will Help to Gain Market Share and will result in to Better Equity Returns

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