Anand Rathi has given Buy recommendation for Aditya Birla Fashion and Retail with a target price of Rs. 349 in its research report issued on Dec 20, 2021

Anand Rathi’s research report on Aditya Birla Fashion and Retail

With launches (Tasva, Marigold Lane) and network expansion, ABFRL’s ethnic wear is gaining momentum. Its core businesses (Lifestyle brands, Pantaloons) continue generating healthy cash, helping fund its new initiatives. Driven by the ramp-up in its new businesses and growth in its core business, its revenue growth would pick up, we expect. Our FY22-24e revenue are raised 4-7%. We expect net debt to reduce. With the recovery in its core businesses, lower net debt and vigorous expansion of its new business, we are positive about the long-term growth trajectory.

Outlook

We upgrade our rating to a Buy with a higher TP of Rs349 on ~17x FY24e EV/EBITDA (earlier Rs333, 16x FY24e EV/EBITDA).

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