Buy Aditya Birla Fashion and Retail; target of Rs 298: Sharekhan

Sharekhan is bullish on Aditya Birla Fashion and Retail has recommended buy rating on the stock with a target price of Rs 298 in its research report dated February 20, 2025.

Broker Research

February 21, 2025 / 11:56 IST

Buy

26 Aug, 2025 12:21

Volume

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Sharekhan's research report on Aditya Birla Fashion and Retail

ABFRL reported improved margins across businesses in Q3FY25 with consolidated EBITDA margin rising by 147 bps y-o-y to 14.7%, led by the company’s focus on multiple strategic initiatives. Revenue growth was muted at 3.3%, in line with a subdued demand environment. Ethnic business and TMRW delivered good performance, whereas growth remained subdued in key businesses (Lifestyle Brands and Pantaloons). Management expects to complete the demerger in the coming 2-3 months. Post the demerger, ABLBL is expected to start with net debt of Rs. 700 crore, while demerged ABFRL is likely to hold a cash balance of Rs. 1,300 crore.

Outlook

The stock trades at 22x/18x/16x its FY25E/FY26E/FY27E EV/EBITDA, respectively. We maintain Buy with a revised SOTP-based PT of Rs. 298.

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