ABFRL - Investment Analysis

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

Investment Rating: 1.8

📊 Fundamental Analysis Summary

Aditya Birla Fashion and Retail Ltd (ABFRL) is currently a high-risk investment with weak profitability, negative returns, and declining institutional interest. While it operates in a high-potential sector (fashion retail), its financials and sentiment suggest caution for long-term investors.

Metric Value Interpretation

Market Cap ₹9,184 Cr Mid-cap — vulnerable to volatility

Stock P/E Not available Negative EPS — company is loss-making

PEG Ratio Not available No meaningful growth valuation due to losses

ROE / ROCE -11.8% / -2.4% Negative returns — poor capital efficiency

Dividend Yield 0.00% No income generation — not suitable for dividend investors

Debt-to-Equity 0.74 Moderate debt — manageable but needs monitoring

EPS ₹-3.08 Loss-making — unsustainable in long term

Book Value ₹55.8 Price-to-book ~1.35× — fair valuation but not compelling given losses

PAT Growth (QoQ) -53.5% Losses widening — negative trend

RSI / MACD 44.6 / -1.08 RSI neutral; MACD negative — weak technical momentum

FII/DII Holding Change -4.57% / -2.51% Both FII and DII selling — strong negative sentiment

52W Price Range ₹70.6 – ₹129 Near 52-week low — technical support possible

📉 Valuation & Entry Price Zone

With no PEG or P/E due to losses, valuation metrics are unreliable. However, price-to-book and technical levels can guide entry.

Ideal Entry Zone: ₹68 – ₹72

This range is near the 52-week low and offers technical support.

Only suitable for speculative investors betting on turnaround.

🧭 If You Already Hold the Stock

Holding Strategy

Time Horizon: Short to medium term (6–12 months) unless profitability improves.

Exit Strategy: Consider exiting if price rebounds to ₹90–₹100 without signs of PAT recovery or ROCE improvement.

Monitor: Quarterly PAT, ROCE trend, and institutional activity.

Key Triggers to Watch

PAT turning positive for 2 consecutive quarters

ROCE improving to at least 5%

FII/DII reversing their selling trend

🧠 Final Thoughts

ABFRL is not a strong candidate for long-term investment at this stage. It may appeal to contrarian investors looking for a turnaround in the fashion retail space, but the financials and sentiment are currently unfavorable.

Would you like to explore stronger retail sector alternatives like Trent or V-Mart, which show better profitability and growth metrics?

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