Aditya Birla Capital: High on diversification, not much on conviction

Lending businesses accounting for about half of its valuations remain laggards

Nearly two years ago, when Aditya Birla Capital (AB Capital) stock was listed following its demerger with Grasim Industries at Rs 250 a share, there was a lot of optimism around it, since it was the only non-banking financial company (NBFC) with a presence across categories – insurance, asset management company (AMC), housing finance (HFC) and pure-play lending. But over time, the enthusiasm has faded away, with the stock crashing by 67 per cent since its listing in September 2017. Ironically, the financial conglomerate’s lending business, accounting for 48 per cent of its total valuations, could be responsible for the