Buy Aditya Birla Fashion and Retail, target price Rs 295: Emkay Global

Emkay Global has buy call on Aditya Birla Fashion and Retail with a target price of Rs 295. The current market price of Aditya Birla Fashion and Retail is Rs 231.2.

Aditya Birla Fashion and Retail, incorporated in the year 2007, is a Large Cap company (having a market cap of Rs 21920.66 Crore) operating in Retail sector.

Aditya Birla Fashion and Retail key Products/Revenue Segments include Apparels, Homemart & Accessories, Commission, Scrap, Export Incentives, Other Operating Revenue and Other Services for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 3615.73 Crore, up 16.76 % from last quarter Total Income of Rs 3096.62 Crore and up 20.07 % from last year same quarter Total Income of Rs 3011.40 Crore. Company has reported net profit after tax of Rs 6.67 Crore in latest quarter.

The company’s top management includes Mr.Kumar Mangalam Birla, Mr.Arun Adhikari, Ms.Preeti Vyas, Mr.Nish Bhutani, Mr.Sunirmal Talukdar, Ms.Sukanya Kripalu, Mr.Vikram Rao, Mr.Vishak Kumar, Ms.Sangeeta Pendurkar, Mr.Ashish Dikshit, Mr.Himanshu Kapania, Mr.Yogesh Chaudhary. Company has S R B C & Co. LLP as its auditors. As on 31-12-2022, the company has a total of 95 Crore shares outstanding.

Investment Rationale
The brokerage remains conservative and expects ABFRL to deliver ~7% consol. EBITDA margin in FY26E; a potential upside risk to its estimates is better performance by the company.

Promoter/FII Holdings
Promoters held 55.47 per cent stake in the company as of 31-Dec-2022, while FIIs owned 14.59 per cent, DIIs 18.53 per cent.