Buy Aditya Birla Fashion and Retail, target price Rs 380: ICICI Direct

ICICI Direct has buy call on Aditya Birla Fashion and Retail with a target price of Rs 380. The current market price of Aditya Birla Fashion and Retail is Rs 312.15. Time period given by analyst is 1 year when Aditya Birla Fashion and Retail price can reach defined target.


Aditya Birla Fashion and Retail, incorporated in the year 2007, is a Large Cap company (having a market cap of Rs 29209.93 Crore) operating in Retail sector.


Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 3096.62 Crore, up 6.56 % from last quarter Total Income of Rs 2905.88 Crore and up 48.91 % from last year same quarter Total Income of Rs 2079.53 Crore. Company has reported net profit after tax of Rs 29.42 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 30-09-2022, the company has a total of 94 Crore shares outstanding.

Investment Rationale
ABFRL has strengthened its balance sheet through recent equity infusion with net debt declining sharply from Rs 2500 crore (in FY20) to ~ Rs 230 crore. The brokerage values ABFRL at Rs 380 i.e. 2.5x FY24E EV/Sales.

Promoter/FII Holdings
Promoters held 56.08 per cent stake in the company as of 30-Sep-2022, while FIIs owned 13.24 per cent, DIIs 18.97 per cent.