Aditya Birla Fashion and Retail Ltd. share price target

On a favourable base, revenue grew 44x YoY to | 2987 crore. Overall revenue recovery surpassed pre-Covid levels and reached 116% in Q3FY22 Tighter markdown management and better product offerings resulted in gross margins improving ~230 bps YoY to 54.7% Strong revenue growth and higher gross margins enabled the company to report an EBITDA (post Ind-AS 116) of | 582 crore vs. EBITDA of | 365 crore in Q3FY21 with EBITDA margin improving 190 bps YoY to 19.5%...

led by festive and wedding seasons. The company recorded a strong topline as well as bottomline growth of 44% and 237% respectively yoy. All the business segments witnessed record high and Ethnic wear. This quarter was an active quarter for the company in terms of higher consumer...

ABFRL has charted out growth strategies to become a ~US$2.8 billion entity (| 21000 crore) by FY26E, translating to 15% CAGR in FY20-26E Company Event: ABFRL has acquired the licencing rights to sell and distribute...

Aditya Birla Fashion and Retail Ltd (ABFRL) acquired Reebok India's current business and exclusive licensing rights for an investment of just INR750m INR1b. Reebok India has a steady revenue/EBITDA of INR4.3b/INR721m In our view, this is a highly value-accretive deal ABFRL has acquired a strong...

Aditya Birla Fashion and Retail (ABFRL) is consolidation of ABNL's branded apparel business of Madura and Pantaloons.

ABFRL has aggressive store addition plans for FY22E with 60+ Pantaloons store and 400+ (franchisee) lifestyle brand stores. Besides, it has a target of opening 100 Pantaloons stores annually over the medium term To penetrate further in small towns through Peter England Red stores and Allen Solly Prime Stores (~200 stores in FY22E) Strengthening omni-channel strategy with enabling 2000+ stores omni enabled from current 1300 stores. Also launching new pantaloons website in Q3FY22 and multi-branded app in Q4FY22...

We factor in a revenue/EBITDA CAGR of 7%/16% over FY20-23E, and estimate Ind AS 116 EBITDA at INR7.3b in FY23E. Net debt remains a key monitorable as earnings in 2HFY22 and the final tranche of the rights issue could offset capex...

On verge of achieving full business normalcy

Aditya Birla Fashion and Retail (ABFRL) is a consolidation of ABNL's branded apparel business of Madura and Pantaloons.

The year FY21, which proved to be a tumultuous year for the Apparel business, impacted ABFRL even more adversely high leverage and squeezed working capital led to a strain on liquidity. This was well responded with equity infusion and unwinding of working capital as market recovered. Overall revenues declined 40% to INR52.5b, dragging down EBITDA by 54% to INR5.5b (pre-Ind-AS 116 EBITDA loss of INR4b). The company's prompt cost management led to overall decline of 36% in operating cost, excluding RM (32% on a pre-Ind-AS 116 basis). The Lifestyle Brands / Pantaloons segment saw 41%/47% revenue decline to...