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Aditya Birla Fashion & Retail share price: Buy Aditya Birla Fashion and Retail, target price Rs 340: Emkay Global


Emkay Global Financial Services has buy call on Aditya Birla Fashion and Retail with a target price of Rs 340. The current market price of Aditya Birla Fashion and Retail Ltd. is Rs 260.15. 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 24376.74 Crore) operating in Retail sector.

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
Strong demand trends, aggressive portfolio/store expansion and improving efficiencies keep us positive. After the recent 10% correction, valuations at ~25x Dec’23E pre-IndAS EBITDA are at a discount to peers. Further, the expansion into Tier-2/3/4 cities with Pantaloons/PE-Red/AS-Prime and traction in the Ethnic category should help sustain high-teen earnings growth well beyond FY24. Reiterate Buy with a TP of Rs340 (30x Dec’23E pre-IndAS EBITDA). The emergence of a third Covid wave remains a key risk to estimates.

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.

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