Aditya Birla Fashion and Retail Stock Outlook
The current market price of the share is Rs 297 each with a gain of 1.35 in trading till today till afternoon. According to Motilal Oswal, if you buy the stock now, it has the potential to climb to Rs 380 with a yield of 29%.
Aditya Birla Return to fashion and retail in 5 years
The title gave a return of 76% in 5 years, 57% in 3 years and 50% in 1 year.
Aditya Birla Fashion and Retail 52 Weeks/Stockings
The stock’s 52-week high is quoted at Rs 321 each and the 52-week low is 195 each, respectively.
Aditya Birla Fashion and Retail Market Capitalization
The company has a market capitalization of Rs 27,938.13 crore at the time of writing the story.
Aditya Birla Fashion and Retail Financial Performance
Hit by the second wave of COVID, consolidated sales recovered, while remaining 7% below pre-COVID (FY20) levels. The EBITDA margin remained stable at 13.5% thanks to good cost control. On a pre-Ind AS 116, the EBITDA margin was 2.2% versus 5.1% in FY20. Lifestyle segment revenue remained resilient, reaching pre-COVID levels (ASP/volumes at 5%/-7%). Pantaloons revenue was 25% below pre-COVID levels (ASP/volume at +9/-32%) as its large format stores and increased mall presence were hit hard by the COVID-19 pandemic. The EBITDA contribution of the Ethnic Wear and Other segments increased from -5% to 4%, driven by a recovery in Fast Fashion, Innerwear and its recent foray into Ethnic Wear.
Aditya Birla Fashion and Retail Multiple Growth Categories
Management highlighted new growth prospects in the industry – Ethnic Wear, Athleisure, D2C and opportunities in smaller towns, with online expected to make up 20% of the total market by CY25. It creates deep breakthroughs in each of these categories, providing multi-year growth prospects, leveraging: a) a host of top-tier in-house brands, b) a deep retail network, c) the inorganic and d) its proven execution. capacity, as evidenced by its leading market position in multiple formats.
Aditya Birla Fashion and Retail Rating
According to Motilal Oswal, “We assess ABFRL on a SoTP basis to arrive at our TP of INR 380, assigning an EV/EBITDA ratio of 20x to Lifestyle brands, given the strong recovery and improved profitability; 17x to Pantaloons; and an EV/EBITDA ratio of sales of 1x to other businesses based on FY24E. On a pre-Ind AS 116 EBITDA of INR 10.6 billion for FY24E, this equates to an EV/EBITDA of around 34x An improved balance sheet, healthy cash flow and strong overall performance remains a key driver for the stock to perform going forward We maintain our Buy rating.
Aditya Birla Fashion and Retail About
Aditya Birla Fashion and Retail Ltd. (ABFRL) emerged after the consolidation of Aditya Birla Group’s branded clothing business comprising ABNL’s Madura Fashion division and ABNL’s subsidiaries Pantaloons Fashion and Retail (PFRL) and Madura Fashion & Lifestyle (MFL) in May 2015 After consolidation, PFRL was renamed Aditya Birla Fashion and Retail Ltd.
Disclaimer
The security was selected in the brokerage report of Motilal Oswal Financial Services. Greynium Information Technologies, the author, and the brokerage are not responsible for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before making any investment decision.
