Motilal Oswal has given Buy recommendation for Aditya Birla Fashion and Retail recommended buy rating on the stock with a target price of Rs 350 in its research rep with a target price of Rs. 350 in its research report issued on Nov 08, 2021

Motilal Oswal’s research report on Aditya Birla Fashion and Retail

Revenue recovered to 89% of pre-COVID levels (2QFY20) at INR20.5b, with a 340bp improvement in gross margin. This translated into an EBITDA/PAT improvement to INR3.1b/INR59m. We factor in a revenue/EBITDA CAGR of 7%/16% over FY20-23E, and estimate Ind AS 116 EBITDA at INR7.3b in FY23E. Net debt remains a key monitorable as earnings in 2HFY22 and the final tranche of the rights issue could offset capex and WC spends. We maintain our Buy rating.

Outlook

We arrive at a TP of INR350/share (from INR280 earlier). We maintain our Buy rating.

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