pdf Detailed Estimates
Hold
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Result Update:Aditya Bir. Fas.
Axis Direct
With an 8% downside potential from the CMP, we maintain our HOLD rating.
Alert
Sell
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New entity can unlock value; remnant still needs investment
Emkay
ABFRL’s board has approved the demerger of its Madura business into a new
entity – ABLBL, upon the requisite regulatory approvals over the next 9-12
months. In our view, this move should unlock value through better capital
allocation and improved investor interest for the two businesses individually.
Alert
Buy
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Demerger – focused on creating value for shareholders
Sharekhan
Aditya Birla Fashion and Retail’s (ABFRL’s) board approved the vertical demerger of Madhura Fashion (MFL) and
Lifestyle business into separate listed entity – Aditya Birla Lifestyle Brands Ltd (ABLBL). Existing shareholders will receive shares of the new entity in the ratio of 1:1.
Alert
Hold
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Result Update:Aditya Bir. Fas.
Axis Direct
Recommendation With a 5% downside potential from the CMP, we maintain our HOLD rating.
Alert
Hold
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Result Update:Aditya Bir. Fas.
Axis Direct
We maintain our HOLD rating to account for near-term challenges a slowdown in discretionary spends, a sharp increase in debt, an increase in ad spends and investment in TCNS and TMRW.
Alert
Hold
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Result Update:Aditya Bir. Fas.
Axis Direct
Recommendation With a -4% upside potential from the CMP, we maintain HOLD rating.
Alert
Neutral
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Weak demand hits 1Q performance; new business posts losses
Motilal Oswal
Alert
Hold
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Underwhelming revenue print: emerging businesses grapple with escalating losses
ICICI Securities Limited
Revenue performance has been decent in Lifestyle brands at +5% YoY (-3% SSSG, 10% retail expansion) but uninspiring in Pantaloons at +1% YoY (-8% SSSG, 17% retail expansion). We liked efficiency driven EBITDA margin gains in the lifestyle brands segment (50% consol. revenue share).
Alert
Hold
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ICICI Direct
Alert
Hold
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Result Update:Aditya Bir. Fas.
Axis Direct
Recommendation With a 6% upside potential from the CMP, we downgrade the stock to HOLD.
Alert
Accumulate
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Uncertain path to profitability in emerging business. Lowered retail expansion guidance.
ICICI Securities Limited
We liked continued strong growth in Madura (10% 4Y CAGR) as premium brands are relatively less impacted by general slowdown in discretionary consumption (at value price). However, performance in Pantaloons has been underwhelming at 13% SSSG (6% 4Y CAGR) vs 23% SSSG of Westside.
Alert
Buy
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Aditya Birla F
Sharekhan
Alert
Neutral
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ABFRL acquires TCNS clothing
Motilal Oswal
Alert
Buy
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Business on track but it is getting bumpy
Motilal Oswal
Alert
Buy
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Strong growth in Madura, underwhelming in Pantaloons
ICICI Securities Limited
We like the continued strong growth in Madura (5% SSSG) during Q3FY23 as premium brands are relatively less impacted by general slowdown in discretionary consumption (at value price). However, performance in Pantaloons has been underwhelming (-9% SSSG vs pre-covid). Emerging businesses’ revenue growth (48% YoY, ~15% of revenues) looks impressive, but unstable profitability causes concern.
Alert
Buy
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ICICI Direct
Alert
Buy
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Result Update:Aditya Bir. Fas.
Axis Direct
Recommendation With a 29% upside potential from the CMP, we maintain a BUY rating on the stock.
Alert
Buy
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D2C takes off with eight digital-first lifestyle brands
Motilal Oswal
Alert
Buy
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ICICI Direct
Alert
Buy
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Play on large diversified portfolio
ICICI Securities Limited
Aditya Birla Fashion and Retail’s (ABFRL) Q2FY23 consolidated revenue grew 50% YoY, implying 3-year CAGR of 10%, with gross margin expanding 166bps.
Alert