Neutral Aditya Birla Fashion and Retail; target of Rs 100: Motilal Oswal

Motilal Oswal recommended Neutral rating on Aditya Birla Fashion and Retail with a target price of Rs 100 in its research report dated May 26, 2025.

Broker Research

May 28, 2025 / 14:59 IST

Neutral

26 Aug, 2025 12:21

Volume

Todays L/H

Motilal Oswal's research report on Aditya Birla Fashion and Retail

Aditya Birla Fashion and Retail’s (ABFRL) combined revenue grew 6% YoY, driven primarily by robust growth in ABFRL (demerged). EBITDA increased significantly, driven by improved profitability in Ethnic and Pantaloons and demerger-related adjustments. ABFRL (demerged) revenue grew 9% YoY, driven by strong performance in Ethnic (+19% YoY) and TMRW (+27% YoY), while Pantaloons posted a 1% YoY decline. EBITDA improved sharply on account of ~470bp margin expansion in Pantaloons and significant margin expansion to ~10% in Ethnic. Aditya Birla Lifestyle Brands (ABLBL) delivered ~2.5% revenue growth on the back of ~9% retail LTL for Lifestyle Brands and ~24% EBITDA growth driven by ~285bp margin expansion on reduced markdowns, better channel mix, etc.

Outlook

We value ABFRL on the SOTP basis. We assign EV/EBITDA multiple of 13x to Pantaloons and EV/sales of 1x to other businesses of ABFRL (demerged) on FY27E. We reiterate our Neutral rating with a TP of INR100.

For all recommendations report, click here