Seven brokerage and investment firms are issuing a buy call for Aditya Birla Capital since posting strong profits in the fiscal year

No less than seven brokerage houses and investment companies have launched a call for purchases for Capital Aditya Birla shares as a financial services provider recently reported strong fourth-quarter and full-year earnings.

These are Motilal Oswal, Swiss credit, HDFC TitlesICICI titles, investedand Morgan Stanleyand their target price is between Rs 130 and Rs 169.

ICICI Securities pegged the highest at Rs 169, while Credit Suisse the lowest at Rs 130. It posted a 20% increase in its consolidated profit after tax to Rs 450 crore Q4, while consolidated revenue rose 18% year-on-year to Rs 6,962 crore.

For the full year FY22, consolidated revenue increased by 16% to Rs 23,633 crore, while after-tax profit increased by 51% to Rs 1,706 crore, which would be the most high ever recorded by the company.

“With the worst of the asset quality behind it, the coming years will see an uptick in its growth and margin profile, lower borrowing costs and better yield ratios,” Motilal Oswal said, adding that the asset management activity should develop better. profitability, driven by an improvement in turnover as well as the rationalization of costs.

Additionally, brokerage ICICI Securities believes that investing in franchises, cross-selling or upselling, and leveraging digital and analytics is likely to help the company improve its RoE (return on capital) profile. clean).

Reviewing FY22 performance, Investec believed the company had mitigated the impact of Covid-19 and was well positioned to deliver strong earnings growth over the next three years.