For Long Term Portfolio and Wealth Creator......
If you have a patience...
Buy Aditya Capital Ltd( CMP 153)
Aditya Birla Capital is a conglomerate of financial services such as NBFC, Insurance, Mutual Funds etc. Its foot print is bigger that that of its arch rivals Bajaj Finserve, Bajaj Finance put together . In addition to other peers like Motilal Oswal, INFL, Edelwise Financial Services, and others.
Financial services will cotinue high growth, Out of all the business in which Aditya Birla Capital has a pie are expected witness high growth. The insurance and mutual fund business are expected to grow at 20 to 25 percent while the banking/NBFC business may gow at 15 to 20 percent. Insurance is at the tip of the iceberg will be bigger thank banking..As the insruance business is a vast scope and that we have not even scratched the surface yet.
We are not even at the starting point of this game called insurance and I think this is going to be something which is beyond and these companies will become bigger than banks.
This sector is highly under penetrated with only a few million people having insurance cover. About 300-400 million more customers are expected to come on board in the ext 5 years also the fact that mortality situation of indian population is improving a lot over the years augers well becuase the number of claims will reduce.
There is long way to grow in the life insurances business. We have seen strong flows in the asset management business. There is huge opportunity in the NBFC space given the credit og GDP is low. From a maco prospective or industry perspective there is headroom to grow. We will look to grow each vertical.
It is a Welath Creator investment without any hesitation owing to its blue chip credentials. At the current level is good buy for only long term investors who want to really wealth create of their family, childrens and etc. At current level trading around 180 and our short term target around 400 to 500 and long term target say 5 years and above 1500 to 2000.
What will happen and what I'm expecting in future in this company.
This company will become a number one company of NBFC sector against all pears..
such as Bajaj Finserve, Bajaj Finance, Motilala Oswal, Geogjit, ILFL, Edelwise finance and etc. Because these are companies having a excellent premium and almost face of Rs. 1 or 2 whereas against the Aditya Birla Capital available of face value of 10. So if you are comparison of these companies Aditya Birla Capital is available almost negligible price looking to fundamentals............I'm expecting in only long term... say 5-10-15-20 years.....
it will move up side 1000-2000-3000-4000-5000 in coming years, thereafter it will split into 1 to 2 face value. Apart from that a number of subsidiaries are their in this company such as
Birla Sunlife Insurance Company, Birla Sun Life Asset Management Company, Aditya Birla Finance, Aditya Birla Housing Finance, Aditya Birla Insurance Brokers
Aditya Birla ARC
Aditya Birla Wellness, Aditya Biral Capital Advisors, Aditya Birla Finance shares services, Aditya Birla Customer services, Adityal Biral Health Insurance and Aditya Birla Money.. around 12 companies under Aditya Biral Capital.This is most important, sooner or later it will be demerger in coming years ... value of this company is beyond imaginalbe in coming years..... so I advise to all my readers/visitors just buy this stock with a good lbots / good quantity looking to long term wealth creation.
Please comment if you like to add to discussion...