Motilal Oswal's research report on Aditya Birla Fashion and Retail
ABFRL’s EBITDA/PAT declined 25%/97% YoY (miss) to INR4.4b/INR67m, as a healthy revenue growth of 20% to INR35.9b was offset by aggressive marketing spends, higher rental costs and losses in new ventures. The Lifestyle business is witnessing strong traction, led by premium categories, but cumulative losses in new businesses (D2C, Ethnic and Reebok) are expected to increase to >INR1.5b in FY24, along with a sluggish recovery in Pantaloons. The numbers should gradually recover from FY25 onward.
Outlook
Accordingly, we cut FY24E EBITDA by 13% and build in an EBITDA CAGR of 27% over FY23-25E. We reiterate our Buy rating with a TP of INR305.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.