Buy Aditya Birla Fashion and Retail; target of Rs 380: ICICI Direct

ICICI Direct's research report on Aditya Birla Fashion and 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 robust distribution network having, 3197 brand stores along with 396 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.

Outlook

ABFRL has strengthened its B/S through recent equity infusion with net debt declining sharply from Rs 2500 crore (in FY20) to ~Rs 230 crore. We remain structurally positive and maintain BUY rating on the stock. We value ABFRL at Rs 380 i.e. 2.5x FY24E EV/Sales.

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Aditya Birla Fashion & Retail - 30 -11-2022 - icici