ICICI Direct has given Buy recommendation for Aditya Birla Fashion & Retail with a target price of Rs. 360 in its research report issued on Feb 07, 2021
ICICI Direct’s research report on Aditya Birla Fashion & Retail
ABFRL combines Madura’s portfolio of leading power brands (Allen Solly, Van Heusen, Louis Philippe and Peter England) with Pantaloons’ forte of largest value fashion retailer. The company has a robust distribution network having, 2874 brand stores along with 342 Pantaloons stores ABFRL has charted out growth strategies to become a ~US$2.8 billion entity (Rs 21000 crore) by FY26E, translating to 15% CAGR in FY20-26E It has enhanced focus on ethnic wear (through its recent acquisitions)
Outlook
ABFRL has strengthened its b/s through recent equity infusion and strong cashflows, which led to the company being net cash surplus (vs. net debt of Rs 2500 crore). We remain structurally positive and maintain BUY rating on the stock We value ABFRL at Rs 360 i.e. 2.5x FY24E EV/sales.
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At 14:41 hrs Aditya Birla Fashion & Retail was quoting at Rs 288.15, down Rs 2.75, or 0.95 percent.
It has touched an intraday high of Rs 294.00 and an intraday low of Rs 284.50.
It was trading with volumes of 103,068 shares, compared to its thirty day average of 195,821 shares, a decrease of -47.37 percent.
In the previous trading session, the share closed down 1.49 percent or Rs 4.40 at Rs 290.90.
The share touched its 52-week high Rs 318.55 and 52-week low Rs 161.10 on 18 January, 2022 and 17 February, 2021, respectively.
Currently, it is trading 9.54 percent below its 52-week high and 78.86 percent above its 52-week low.
Market capitalisation stands at Rs 25,735.88 crore.