Moneycontrol Be a Pro
Get App
Last Updated : Nov 15, 2019 02:13 PM IST | Source:

Buy Aditya Birla Fashion and Retail; target of Rs 240: ICICI Direct

ICICI Direct is bullish on Aditya Birla Fashion and Retail has recommended buy rating on the stock with a target price of Rs 240 in its research report dated November 13, 2019.

Broker Research @moneycontrolcom
  • bselive
  • nselive
Todays L/H

ICICI Direct's research report on Aditya Birla Fashion and Retail

The consumption slowdown had a negative impact across product categories. However, the apparel segment appeared to be more resilient in discretionary spending. ABFRL reported a healthy show with topline growth of 14.4% YoY to Rs 2297.2 crore. Growth was witnessed across categories, with lifestyle brands and Pantaloons reporting sturdy SSSG of 7.0% and 10.4%, respectively. Despite a significant increase in marketing spends and discounting, EBITDA margins remained constant YoY at 7.1% with EBITDA increasing 15% YoY to Rs 164.2 crore. Driven by a steady operational performance, PBT grew 39% YoY to Rs 59.4 crore. Owing to deferred tax adjustment, PAT for the quarter declined 29% YoY to Rs 30.5 crore.


We continue to like ABFRL due to its strong brand portfolio of lifestyle brands and improving profitability metrics for Pantaloons. Factoring in the performance of YTD FY20E, we revise our profitability estimates downwards. We pencil in revenue and EBITDA CAGR of 13% and 21%, respectively, for FY19-21E. We reiterate our BUY recommendation on the stock with a target price of Rs 240 (2.0x FY21E EV/sales).

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

LIVE NOW... Video series on How to Double Your Monthly Income... where Rahul Shah, Ex-Swiss Investment Banker and one of India's leading experts on wealth building, reveals his secret strategies for the first time ever. Register here to watch it for FREE.
First Published on Nov 15, 2019 02:13 pm
Follow us on
Available On