May 24, 2018 12:47 PM IST | Source: Moneycontrol.com

Aditya Birla Capital gains 3% after Credit Suisse initiates Outperform rating

Company reported nearly double growth in consolidated profit at Rs 208 crore for the March quarter 2018 against Rs 109 crore in corresponding period last fiscal.

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Aditya Birla Capital share price gained as much as 2.6 percent on Thursday after global brokerage house Credit Suisse has initiated Outperform rating on the stock with a price target of Rs 175, implying a 24 percent potential upside from Wednesday's closing price.

The company is a financial conglomerate with mix of leading and emerging businesses.

Life insurance business is showing improving profitability, the research house said, adding the key catalyst for lending business could be an upgrade in credit rating.

Meanwhile, the company reported nearly double growth in consolidated profit at Rs 208 crore for the March quarter 2018 against Rs 109 crore in corresponding period last fiscal. Revenue from operations also doubled to Rs 4,203 crore from Rs 2,161 crore YoY.

At 12:32 hours IST, the stock price was quoting at Rs 142.85, up Rs 1.70, or 1.20 percent on the BSE.