Shares of Aditya Birla Lifestyle Brands Ltd (ABLBL) rose nearly 1.7% in early trade on Wednesday, July 16, after Bernstein initiated coverage on the stock with a ‘Market-Perform’ rating and a target price of ₹170. The stock was trading at ₹157.86 on NSE at 9:35 AM, up ₹2.62 from the previous close of ₹155.24.
The stock touched an intraday high of ₹158.85 and a low of ₹155.75, within its 52-week range of ₹151.00–₹175.00. At this level, the company saw a healthy average volume of 1.76 million shares.
Bernstein’s note highlighted that ABLBL — which was recently demerged from Aditya Birla Fashion and Retail Ltd and listed as a standalone entity on June 23, 2025 — has a strong portfolio of legacy lifestyle brands like Louis Philippe, Van Heusen, Allen Solly, and Peter England, which have defined the western formalwear category in India for over two decades. The company also owns emerging brands such as Reebok, American Eagle, and Van Heusen Innerwear, which target higher-growth segments like sports, athleisure, and innerwear.
The brokerage praised ABLBL’s market leadership and brand recall but expressed caution about long-term growth prospects, citing high market penetration, rising casualisation trends, and intense competition in the apparel segment. Historically, lifestyle brands have underperformed, growing at less than 6% CAGR over the past decade — slower than nominal GDP.
Looking ahead, Bernstein projects ABLBL to deliver around 9.5% revenue growth over FY25–FY30 at an estimated 10% EBITDA margin, noting that casual and wedding wear offer opportunities but remain highly competitive. It also cautioned that consistent double-digit growth would be the key upside risk to its cautious stance.
Investors welcomed the coverage initiation and positive outlook on medium-term growth, reflected in the stock’s modest uptick in today’s trade.
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