Home Fashion products Aditya Birla Fashion and Retail Stock Price: Buy Aditya Birla Fashion and Retail, Target Price Rs 340: ICICI Direct

Aditya Birla Fashion and Retail Stock Price: Buy Aditya Birla Fashion and Retail, Target Price Rs 340: ICICI Direct

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ICICI Direct has a call to buy on Aditya Birla Fashion and Retail with a target price of Rs 340. The current market price is Rs 242. The time period given by the analyst is one year when . the price can reach the set target.

Aditya Birla Fashion and Retail Ltd., incorporated in 2007, is a large capitalization company (having a market capitalization of Rs 22678.76 Crore) operating in the retail sector.

Aditya Birla Fashion and Retail Ltd. Major products/revenue segments include apparel, home and accessories, commissions, scrap metal, export incentives, other operating revenue and other services for the year ending March 31, 2021 .

Finance

For the quarter ended 31-03-2022, the company reported consolidated total revenue of Rs 2309.55 Crore, down -23.31% from last quarter, total revenue of Rs 3011.40 Crore and up 25.57% compared to the same quarter last year. Total income of Rs 1839.24 Crore. The company reported a net profit after tax of Rs 30.76 Crore last quarter.

Investment rationale
ABFRL combines the flagship brand portfolio of Madura (Allen Solly, Van Heusen, Louis Philippe and Peter England) with the strength of Pantaloons, the largest value fashion retailer. The overall revenue recovery rate reached 93% of pre-covid levels in FY22, driven primarily by the strong presence of lifestyle brands. Launches of new activewear and leisurewear categories and significant store additions (over 140) fueled growth. Demand trends remain strong, with the main drivers being the strong wedding season and the revival of the formal portfolio with the opening of offices. The ethnic space continues to be the next growth driver for ABFRL, with the business currently operating at an annual rate of Rs 400 crore. ABFRL has aggressive store addition plans for FY23E with over 75 Pantaloons stores and over 400 lifestyle brand stores (franchises). The recent announcement of a fundraising is worth | 2195 crore (equity + warrants) at

would enable ABFRL to meet its long-term capital needs and improve its competitive positioning



Promoter/Fii Holdings
The promoters held 56.09% of the company’s capital as of March 31, 2022, while the FIIs held 13.19% and the DIIs 19.51%.

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