Buy Aditya Birla Fashion and Retail, target price Rs 336: ICICI Securities

ICICI Securities has buy call on Aditya Birla Fashion and Retail with a target price of Rs 336. The current market price of Aditya Birla Fashion and Retail is Rs 286.85. Time period given by analyst is one year when Aditya Birla Fashion and Retail Ltd. price can reach defined target.
Aditya Birla Fashion and Retail Ltd., incorporated in the year 2007, is a Large Cap company (having a market cap of Rs 27039.43 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
The brokerage believes ABFRL would be able to deliver low double-digit (pre-IndAS116) EBITDA margin for Reebok India post royalty expenses, and hence, this transaction is likely to add 4- 5% to consolidated EBITDA (pre-IndAS116) from FY23E.

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.