Highest Upside

We initiate coverage on ABLBL with BUY and Sep-26E TP of Rs170 (25x Sep27E pre-IndAS EBITDA). ABLBL owns a portfolio of India’s leading fashion brands, having recently de-merged from ABFRL.

We have a BUY on ABLBL, with a TP of Rs170 (25x Sep-27E EBITDA). ABLBL’s Q2 EBITDA was in line with expectations, albeit the performance was muted with 4% topline growth.

Aditya Birla Fashion and Retail’s (ABFRL) combined revenue grew 6% YoY, driven primarily by robust growth in ABFRL (demerged). EBITDA increased significantly, driven by improved profitability in Ethnic and Pantaloons and demerger-related adjustments.

We upgraded Swiggy to BUY (see our report dated, 4th September, Internet: A buffet of tailwinds), reflecting an inflection in growth of the food delivery (FD) business and improved unit economics in the quick commerce (QC) business.

IndiaMART (INMART) reported 2QFY26 revenue growth of 12% YoY vs. our estimate of 9.5% YoY growth. Deferred revenue rose 17% YoY to INR17.5b.

With a 15% upside from the CMP, we maintain a BUY rating on the stock

We resume our coverage with a HOLD rating on the stock.

We attended Avenue Supermarts (DMart)’s FY25 analyst meet, wherein the management indicated acceleration in store additions as the utmost priority.

We interacted with the management of Aditya Birla Fashion and Retail (ABFRL) to discuss the growth prospects and profitability outlook for the company’s various segments and other focus areas.