Sharekhan's research report on Aditya Birla Fashion & Retail
Aditya Birla Fashion & Retail (ABFRL) reported muted 5% y-o-y revenue growth with double-digit (12-15%) LTL decline in Lifestyle brands and Pantaloons while ethnic and other businesses posted strong growth. EBITDA margin fell by ~300 bps y-o-y with higher losses in Pantaloons business due to inventory liquidation. Reported loss stood at Rs. 200 crore. Net debt to stay high at Rs. 2,700-2,800 crore (including GIC infusion of ~Rs. 1,400 crore) at FY2024-end.
Outlook
Stock trades at 19x/15x its FY2024E/25E EV/EBITDA. We maintain Hold on the stock with a revised PT of Rs. 238.
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