ABFRL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.4
| Stock Code | ABFRL | Market Cap | 7,836 Cr. | Current Price | 64.2 ₹ | High / Low | 106 ₹ |
| Book Value | 66.8 ₹ | Dividend Yield | 0.00 % | ROCE | -0.17 % | ROE | -3.01 % |
| Face Value | 10.0 ₹ | DMA 50 | 63.6 ₹ | DMA 200 | 73.2 ₹ | Chg in FII Hold | -2.83 % |
| Chg in DII Hold | -1.28 % | PAT Qtr | -38.9 Cr. | PAT Prev Qtr | -90.9 Cr. | RSI | 55.0 |
| MACD | 0.77 | Volume | 43,56,585 | Avg Vol 1Wk | 50,47,907 | Low price | 53.5 ₹ |
| High price | 106 ₹ | Debt to equity | 0.45 | 52w Index | 20.3 % | Qtr Profit Var | -17.4 % |
| EPS | -0.77 ₹ | Industry PE | 29.8 |
📈 Positive
- Market capitalization of ₹7,836 Cr. provides scale in fashion and retail.
- Book value (₹66.8) slightly above current price (₹64.2), offering margin of safety.
- Debt-to-equity ratio of 0.45 indicates manageable leverage.
- PAT loss narrowed (₹-38.9 Cr. vs ₹-90.9 Cr.), showing gradual improvement.
- MACD positive (0.77), suggesting mild bullish momentum.
⚠️ Limitation
- Negative ROCE (-0.17%) and ROE (-3.01%) highlight poor efficiency.
- EPS of ₹-0.77 reflects continued losses.
- Dividend yield of 0.00% offers no income support.
- Trading below DMA 200 (₹73.2), showing weak long-term trend.
- RSI at 55.0 indicates neutral momentum, lacking strong buying signals.
🚨 Company Negative News
- FII holdings declined (-2.83%) and DII holdings declined (-1.28%), showing reduced institutional confidence.
- Quarterly profit variation (-17.4%) highlights volatility.
- Weak fundamentals with persistent losses.
🌟 Company Positive News
- Losses narrowed compared to previous quarter, showing gradual recovery.
- Stock trading near DMA 50 (₹63.6), providing short-term support.
- Liquidity remains decent with average weekly volume of ~50 lakh shares.
🏭 Industry
- Industry P/E of 29.8 highlights ABFRL’s weak fundamentals relative to peers.
- Fashion and retail sector outlook remains cyclical, tied to consumer demand and discretionary spending.
- Sector requires profitability recovery to justify valuations.
📝 Conclusion
ABFRL is fundamentally weak, with negative efficiency metrics and declining institutional interest. While losses are narrowing, profitability remains elusive.
🔑 **Entry Zone:** ₹55–₹60, closer to valuation comfort and support levels.
📌 **Long-term Holding Guidance:** Suitable only for speculative medium-term holding; long-term suitability is weak unless profitability improves. Risk remains high due to negative ROE/ROCE, declining institutional interest, and weak fundamentals; maintain strict stop-loss around ₹53.
This positions ABFRL as a fundamentally fragile candidate, better suited for cautious accumulation only if profitability recovery becomes visible. Would you like me to extend this into a sector overlay benchmarking (ABFRL vs Trent, Shoppers Stop, and V-Mart) to highlight relative valuation and efficiency gaps?