Sharekhan's research report on Aditya Birla Fashion & Retail
Aditya Birla Fashion & Retail Limited (ABFRL) registered good performance in Q4FY2024 with revenue growing by 18% y-o-y, while EBIDTA margin expanded 163bps y-o-y to 8.3%, leading to 47% y-o-y growth in EBIDTA. Pantaloons’ revenue grew 12% (LFL growth of 1%), new businesses such as ethnic wear and TMRW registered strong growth of 51% and 2.1x y-o-y, respectively. Net debt at FY2024-end is at ~Rs. 2,900 crore. By FY2025-end, management expects net debt for ABLBL to be at Rs. 600-700 crore and the demerged ABFRL entity to have negligible debt or to be net-debt positive (post fundraising).
Outlook
The stock trades at 21x/16x its FY2025E/FY2026E EV/EBITDA. We maintain Buy on the stock with a revised PT of Rs. 400.
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