Analysts believe that Aditya Birla Capital shares will continue to rise, with growth prospects of 30%, even after the stock skyrocketed by 2,650% in the past 5 years. Macquarie Equity Research has an "outperform" rating on the stock based on improving margins, growth in unsecured loans, and declining credit costs. The brokerage forecasts the company's return on assets (ROA) to recover to sustainable levels of 2.3-2.4% with a rebound in personal loan growth and with margins expanding as interest rates decline. The well-structured portfolio, strong promoter backing, and digital-first strategy that Aditya Birla Capital has should also support growth as India's financial services market evolves.
Source: Equity Master