⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
ABFRL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.5
| Stock Code | ABFRL | Market Cap | 8,035 Cr. | Current Price | 65.8 ₹ | High / Low | 106 ₹ |
| Book Value | 66.8 ₹ | Dividend Yield | 0.00 % | ROCE | -0.17 % | ROE | -3.01 % |
| Face Value | 10.0 ₹ | DMA 50 | 72.8 ₹ | DMA 200 | 80.8 ₹ | Chg in FII Hold | -0.26 % |
| Chg in DII Hold | -0.17 % | PAT Qtr | -90.9 Cr. | PAT Prev Qtr | -59.9 Cr. | RSI | 34.5 |
| MACD | -3.26 | Volume | 25,02,853 | Avg Vol 1Wk | 48,29,607 | Low price | 59.8 ₹ |
| High price | 106 ₹ | Debt to equity | 0.45 | 52w Index | 13.0 % | Qtr Profit Var | 34.5 % |
| EPS | 0.00 ₹ | Industry PE | 44.3 |
📊 Core Financials
- Revenue & Profitability: PAT worsened from –59.9 Cr. to –90.9 Cr., showing deepening losses.
- Margins: ROE at –3.01% and ROCE at –0.17% are negative, reflecting poor efficiency.
- Debt: Debt-to-equity ratio of 0.45 indicates moderate leverage, but losses make it risky.
- Cash Flow: Negative profitability raises sustainability concerns despite manageable debt.
💹 Valuation Indicators
- P/E Ratio: Not applicable due to negative earnings.
- P/B Ratio: Current price (₹65.8) vs. book value (₹66.8) → ~0.98x, near fair value.
- PEG Ratio: Not meaningful due to losses.
- Intrinsic Value: Valuation appears weak given sustained losses and poor return metrics.
🏢 Business Model & Competitive Advantage
- Aditya Birla Fashion & Retail (ABFRL) operates in branded apparel and retail, with a portfolio of well-known fashion brands.
- Competitive advantage lies in brand strength and retail presence, but profitability remains a challenge.
📈 Technicals & Entry Zone
- DMA 50 (₹72.8) and DMA 200 (₹80.8) are above current price, showing weakness.
- RSI at 34.5 indicates oversold territory; MACD negative suggests bearish sentiment.
- Entry Zone: Attractive only near ₹60–65 for speculative accumulation.
- Long-Term Holding: Risky unless profitability improves significantly.
✅ Positive
- Strong brand portfolio under Aditya Birla Group.
- Debt-to-equity ratio (0.45) is moderate compared to peers.
- Stock trading near book value, limiting downside risk.
⚠️ Limitation
- Negative ROE (–3.01%) and ROCE (–0.17%).
- Consistent losses with worsening PAT.
- No dividend yield, offering no immediate shareholder return.
📉 Company Negative News
- Quarterly PAT worsened to –90.9 Cr., showing deepening losses.
- FII holdings decreased (–0.26%) and DII holdings decreased (–0.17%), showing reduced institutional confidence.
📈 Company Positive News
- Strong retail presence and brand recognition in India.
- Stock trading close to book value, limiting valuation downside.
🏭 Industry
- Fashion and retail sector benefits from rising consumer demand and urbanization.
- Industry average P/E (44.3) highlights ABFRL’s weak profitability compared to peers.
🔎 Conclusion
- ABFRL shows strong brand presence but faces sustained losses and weak return metrics.
- Valuation is near book value, but profitability concerns make current levels risky.
- Recommendation: Avoid fresh entry; speculative accumulation only near ₹60–65. Long-term holding viable only if profitability improves and ROE/ROCE turn positive.