Buy Aditya Birla Fashion and Retail, target price Rs 349: Anand Rathi

Anand Rathi has buy call on Aditya Birla Fashion and Retail with a target price of Rs 349. The current market price of Aditya Birla Fashion and Retail is Rs 275.8.

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 25379.94 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 has 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 has reported net profit after tax of Rs 5.89 Crore in latest quarter.

Investment Rationale
The brokerage upgrades rating to a Buy with a TP of Rs349, on ~17x FY24e EV/EBITDA (16x FY24e EV/EBITDA earlier). Risk: Slowdown in discretionary demand. Keen competition.

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.