Aditya Birla Fashion and Retail Ltd., incorporated in the year 2007, is a Large Cap company (having a market cap of Rs 28745.80 Crore) operating in Retail sector.
Aditya Birla Fashion and Retail Ltd. key Products/Revenue Segments include Apparels, Homemart & Accessories, Commission, Scrap, Export Incentives, Other Operating Revenue and Other Services for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 2079.53 Crore, up 148.66 % from last quarter Total Income of Rs 836.29 Crore and up 77.54 % from last year same quarter Total Income of Rs 1171.32 Crore. Company reported net profit after tax of Rs 5.89 Crore in latest quarter.
Investment Rationale
In both sales and profitability, ABFRL’s Q2FY22 print beat expectations. Revenue increased by 96% to INR19.96bn (HSIE: 19.23bn). Madura/Pantaloons rose by 97/80% YoY, respectively, to INR13.9/6.6bn. The 515bps YoY (52.6%) GM recoup was sharper than expected (HSIE: 50.1%), owing to (1) lower-than- expected inventory provisioning and discounting levels and (2) a higher skew of Lifestyle brands/Madura in the revenue mix. PBT has returned to profitability (INR197mn). At 0.4x, net debt/equity remains manageable. FY23/24 EBITDA estimates remain unchanged. It retains BUY on ABFRL with a DCF-based TP of INR 320/sh, implying 27x Dec-FY23 EV/EBITDA.
Promoter/FII Holdings
Promoters held 56.13 per cent stake in the company as of 30-Sep-2021, while FIIs owned 13.84 per cent, DIIs 17.78 per cent.
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