Aditya Birla Fashion and Retail Ltd. Brokerage/Research Reports, analyst Research Reports (2024)

Broker Report

Result Update:Aditya Bir. Fas.

Axis Direct

With an 8% downside potential from the CMP, we maintain our HOLD rating.

Broker Report

New entity can unlock value; remnant still needs investment

Emkay

ABFRL’s board has approved the demerger of its Madura business into a new
entity – ABLBL, upon the requisite regulatory approvals over the next 9-12
months. In our view, this move should unlock value through better capital
allocation and improved investor interest for the two businesses individually.

Broker Report

Demerger – focused on creating value for shareholders

Sharekhan

Aditya Birla Fashion and Retail’s (ABFRL’s) board approved the vertical demerger of Madhura Fashion (MFL) and
Lifestyle business into separate listed entity – Aditya Birla Lifestyle Brands Ltd (ABLBL). Existing shareholders will receive shares of the new entity in the ratio of 1:1.

Broker Report

Result Update:Aditya Bir. Fas.

Axis Direct

Recommendation With a 5% downside potential from the CMP, we maintain our HOLD rating.

Broker Report

Result Update:Aditya Bir. Fas.

Axis Direct

We maintain our HOLD rating to account for near-term challenges a slowdown in discretionary spends, a sharp increase in debt, an increase in ad spends and investment in TCNS and TMRW.

Broker Report

Result Update:Aditya Bir. Fas.

Axis Direct

Recommendation With a -4% upside potential from the CMP, we maintain HOLD rating.

Broker Report

Weak demand hits 1Q performance; new business posts losses

Motilal Oswal

Broker Report

Underwhelming revenue print: emerging businesses grapple with escalating losses

ICICI Securities Limited

Revenue performance has been decent in Lifestyle brands at +5% YoY (-3% SSSG, 10% retail expansion) but uninspiring in Pantaloons at +1% YoY (-8% SSSG, 17% retail expansion). We liked efficiency driven EBITDA margin gains in the lifestyle brands segment (50% consol. revenue share).

Broker Report

ICICI Direct

Broker Report

Result Update:Aditya Bir. Fas.

Axis Direct

Recommendation With a 6% upside potential from the CMP, we downgrade the stock to HOLD.

Broker Report

Uncertain path to profitability in emerging business. Lowered retail expansion guidance.

ICICI Securities Limited

We liked continued strong growth in Madura (10% 4Y CAGR) as premium brands are relatively less impacted by general slowdown in discretionary consumption (at value price). However, performance in Pantaloons has been underwhelming at 13% SSSG (6% 4Y CAGR) vs 23% SSSG of Westside.

Broker Report

Aditya Birla F

Sharekhan

Broker Report

ABFRL acquires TCNS clothing

Motilal Oswal

Broker Report

Business on track but it is getting bumpy

Motilal Oswal

Broker Report

Strong growth in Madura, underwhelming in Pantaloons

ICICI Securities Limited

We like the continued strong growth in Madura (5% SSSG) during Q3FY23 as premium brands are relatively less impacted by general slowdown in discretionary consumption (at value price). However, performance in Pantaloons has been underwhelming (-9% SSSG vs pre-covid). Emerging businesses’ revenue growth (48% YoY, ~15% of revenues) looks impressive, but unstable profitability causes concern.

Broker Report

ICICI Direct

Broker Report

Result Update:Aditya Bir. Fas.

Axis Direct

Recommendation With a 29% upside potential from the CMP, we maintain a BUY rating on the stock.

Broker Report

D2C takes off with eight digital-first lifestyle brands

Motilal Oswal

Broker Report

ICICI Direct

Broker Report

Play on large diversified portfolio

ICICI Securities Limited

Aditya Birla Fashion and Retail’s (ABFRL) Q2FY23 consolidated revenue grew 50% YoY, implying 3-year CAGR of 10%, with gross margin expanding 166bps.