Aditya Birla Fashion & Retail Limited, incorporated in the year 2007, is a Large Cap company (having a market cap of Rs 24376.74 Crore) operating in Retail sector.
For the quarter ended 30-09-2021, the Company reported Consolidated Total Income of Rs.2079.53 Crore, up 148.66% from last quarter’s Total Income of Rs.836.29 Crore and 77.54% from Rs.1171.32 Crore in corresponding quarter last year. up. Company has reported Net Profit after Tax of Rs 5.89 Crore in latest quarter.
Strong demand trends, aggressive portfolio/store expansion and efficiency improvements keep us positive. After the recent 10% correction, the valuation at ~25x Dec’23E Pre-INDAS EBITDA is at a discount to peers. In addition, expansion into Tier-2/3/4 cities with Pantaloons/PE-Red/AS-Prime and traction in the ethnic category will help sustain high-teen income growth beyond FY24. Buy again with TP of Rs 340 (30x Dec’23E Pre-INDAS EBITDA). The emergence of a third COVID wave remains a major risk to projections.
As of 30-September-2021, promoters held 56.13 per cent stake in the company, while FIIs held 13.84 per cent, DIIs 17.78 per cent.
(Disclaimer: The recommendations made in this section or any report attached herein are written by an outside party. The views expressed are those of the respective authors/entities. They do not represent the views of The Economic Times (ET). ET Guarantee does not warrant, endorse, endorse any of its contents and hereby disclaim all warranties, express or implied, relating to the same. Please consult your financial advisor and seek independent advice.