Aditya Birla Capital target price upgraded to Rs 332 on a SOTP basis

[Ravi]

Aditya Birla Capital continues to deliver robust growth across lending, AMC, and insurance verticals, supported by stable asset quality and rising operating leverage. The lending business remains robust, with calibrated expansion in unsecured loans. HFC has witnessed robust growth, beating management guidance. AMC businesses are scaling profitably, while Life Insurance vertical has shown VNB margin and persistency gains. The Health Insurance vertical is inching closer to breakeven with strong top-line momentum. With the successful execution of a multi-pronged strategy, we have upgraded our target price to Rs 332 on a SOTP basis (2.1x P/B NBFC, 1.5x P/B HFC, 24x P/E AMC, 1.4x FY25 Embedded Value for Life and Health (recent Deal Value) & Other business at Mcap).