ABFRL - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 1.8

Let’s break down Aditya Birla Fashion and Retail Ltd. (ABFRL) — a retail heavyweight navigating a tough cycle, bruised by operational strain and investor caution.

📉 Core Financial Overview

Profitability & Returns

ROE: -11.8%, ROCE: -2.4% — both negative, signaling deep inefficiencies and lack of profitability.

EPS: -₹3.08 — losses continue to mount, confirming financial stress.

PAT Qtr: -₹115 Cr vs -₹106 Cr Prev Qtr — negative performance persists; marginal deterioration.

Debt Profile

Debt-to-Equity: 0.74 — moderate, but could turn risky amid declining returns.

Dividend Yield: 0.00% — funds are clearly being reinvested or preserved due to losses.

📊 Valuation Snapshot

Metric Value Interpretation

P/E Ratio ❌ N/A Not meaningful due to negative earnings

P/B Ratio ~1.35 Fairly priced in terms of book value

PEG Ratio ❌ N/A Inapplicable — earnings in red

Intrinsic Value Below CMP Poor fundamentals hinder intrinsic growth support

🛍️ Business Model & Strategic Positioning

Operates across apparel brands, retail chains, and ethnic wear verticals.

Hosts marquee labels like Pantaloons, Van Heusen, Allen Solly, and Jaypore — catering to both mass and premium segments.

Brand equity is strong, yet operational cash burn and poor scalability impact bottom line.

Institutional Sentiment

FII Hold ↓ -4.57%

DII Hold ↓ -2.51% — notable exits point to eroding confidence.

📈 Technical Indicators

RSI: 44.6 — neutral zone, not yet oversold.

MACD: -1.08 — mildly bearish sentiment.

Trading below both DMA 50 & DMA 200, confirming short-term weakness.

52W Price Range: ₹70.6–₹129, CMP scraping the lower end — potential for bottom-building.

📍 Entry Zone & Long-Term Outlook

Suggested Entry Zone: ₹68–₹74 — near historic support levels.

Holding Outlook

Speculative investors may consider nibbling if strategic turnaround plans materialize.

Long-term story hinges on retail revival, digital pivot, and cost control.

Regular monitoring needed for improving ROE, profitability, and institutional behavior.

If you want to explore how ABFRL stacks up against peers like Trent, Shoppers Stop, or Reliance Retail, I can build a comparative matrix to sharpen the view 👕📊. Let me know your angle!

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