Aditya Birla Fashion shares decline 4% after posting net loss in Q3

In the last three months, the stock has gained over 10 percent on the bourses.

Shares of Aditya Birla Fashion and Retail Limited declined 4 percent to Rs 234.5 in the morning trade on February 15 after the company posted a net loss of  Rs 107.60 crore for the third quarter, as against a net profit of Rs 11.21 reported last year.

The company's revenue from operations for the quarter stood at Rs 4,166.71 crore, marking a 16 percent increase from Rs 3,588.80 crore in the corresponding quarter last year.

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At 10:10am, the stock was trading at Rs 237, down 2.42 percent from the previous close. In the last three months, it has gained over 10 percent on the bourses.

Additionally, the earnings before interest, tax, depreciation, and amortisation (EBITDA) for the quarter reached Rs 605 crore, reflecting a growth of 29 percent.

Global brokerage house Morgan Stanley is 'underweight' on the stock and has assigned a target price of Rs 176. This implies a downside of 27.5 percent from the last close of Rs 243. "The third quarter's revenue decline in the lifestyle brands segment and athleisure were negatives," analysts said post the result.

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