Morgan Stanley has reiterated its ‘Underweight’ rating on Aditya Birla Fashion and Retail Ltd (AB Fashion), assigning a target price of ₹271 per share, implying a modest upside of approximately 2.7% from the current market price of ₹263.90. The brokerage emphasized that while the company has indicated a strategic shift towards organic growth, the key focus remains on delivering profitability—even if attractive inorganic opportunities arise.
Morgan Stanley believes that if this renewed profitability-first approach is successfully executed, it could pave the way for a meaningful re-rating of the stock in the medium term. However, the current valuation already factors in some optimism, which tempers near-term enthusiasm from the firm’s side.
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