Multibagger stock - Aditya Birla Capital: Up 91% since Feb low, this stock still offers 20% upside
Aditya Birla Capital (ABCL), whose shares are up 91 per cent from the February 2025 low, received a Buy rating from Motilal Oswal Financial Services (MOFSL), with a target price of Rs 340 that indicates a potential 20 per cent upside. The multibagger scrip has gained 145.40 per cent in the past three years and 303 per cent in the past five.
MOFSL said ABCL has steadily evolved into a digitally enabled, customer-focused financial services platform with a diversified presence across lending, insurance, and asset management. The brokerage highlighted that the company has sharpened its strategic focus on expanding its retail and MSME lending portfolio, enhancing productivity through proprietary digital platforms such as the ABCD App and Udyog Plus, and strengthening its omni-channel presence to boost direct customer engagement.
In recent quarters, ABCL has implemented several measures, including tightening underwriting standards, reducing exposure to small-ticket loans, and recalibrating digital partnerships in its personal and consumer loans (P&C) segment. These steps have helped maintain asset quality, which MOFSL noted is significantly stronger than that of peers. With credit quality stabilising and business momentum improving, ABCL has accelerated growth in the P&C segment, which carries structurally higher yields and margins.
The housing finance subsidiary has also posted robust growth over the past two years, underpinned by strategic investments that are now yielding results. ABCL’s strategy is centred on maintaining a diversified portfolio, with a balanced focus on both prime and affordable housing, alongside a significant presence in construction finance. MOFSL expects the housing finance arm to sustain its strong growth trajectory, supported by the capacity built in recent years and cross-selling opportunities across the Aditya Birla Group ecosystem.
ABCL has also completed the amalgamation of its wholly owned subsidiary, Aditya Birla Finance (ABFL), with itself, creating a larger and unified entity with greater financial strength and operational flexibility.
“With its key building blocks firmly established and a vast market opportunity ahead, ABCL is well positioned to achieve the next phase of growth. We expect consolidated PAT (pre minority interest) CAGR of 26 per cent over FY25–27. The thrust on cross-selling, investments in digital platforms, and leveraging ‘One ABC’ will drive healthy return ratios, with consolidated RoE improving to around 14 per cent by FY27,” MOFSL said, reiterating a Buy rating.
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