Stock To Buy: Motilal Oswal Bullish On Midcap Aditya Birla Stock, Sees 30% Upside

Aditya Birla Fashion and Retail's stock performance and returns

The stock of ABFRL jumped 2.48% from its previous close and closed at Rs 235.40 apiece. The stock's previous close was 229.70 apiece. Its 52-week high is Rs 359.50 apiece and its 52-week low is Rs 221.30 apiece, respectively.

The stock gained 0.43% in 1 week. It declined 6.53% in 1 month and 25.51% in 3 months, respectively. It declined 12.3% in 1 year and 6.36% in 3 years, respectively. However, the stock gave 56.99% positive return in 5 years.

Buy The Stock With A Target Price of Rs 305/Share

According to Motilal Oswal, ABFRL's strong execution capability is reflected in its ability to scale up a series of strong brands in the last 10 years. While the Lifestyle segment continues to deliver a healthy performance, a sluggish recovery in the Pantaloons segment and incremental investments in new businesses could drag down profitability in the near term. Scaling up the Reebok segment and turning around the newly set-up D2C segment/ethnic wear remain key monitorables. "We factor in a revenue/EBITDA CAGR of 18%/27% over FY23-25E. We value ABFRL on the SOTP basis, assigning EV/EBITDA of 15x to Lifestyle Brands, 10x to Pantaloons, and EV/sales of 1x to other businesses on FY25E. Subsequently, we arrive at a TP of INR305. We reiterate our Buy rating on the stock," the brokerage as said.

Disclaimer

The stock has been picked from the brokerage report of Motilal Oswal. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.