Aditya Birla Fashion and Retail Ltd shares jumped 2.8% after global brokerage Jefferies initiated coverage with a ‘Buy’ rating and a target price of ₹315, signaling confidence in the company’s pivot towards profitable growth and disciplined execution.
Jefferies highlighted ABFRL’s strategic shift, including the consolidation of core operations and a pause on new acquisitions, as key positives. The upcoming corporate restructuring—splitting ABFRL into Aditya Birla Lifestyle Brands Ltd (ABLBL) and the residual ABFRL—is expected to unlock shareholder value and sharpen business focus.
The brokerage projects a 10–11% revenue CAGR over FY25–27, driven by modest margin expansion and robust free cash flow (FCF) generation. The lifestyle brands under ABLBL are showing strong FCF growth, while losses in other segments are expected to narrow, boosting overall profitability.
With a strong brand portfolio and improved capital discipline, ABFRL is well-positioned for long-term upside potential, according to Jefferies.
Aditya Birla Fashion shares opened at ₹254.00 today, matching the day’s high, while the low touched ₹249.25. The stock remains well below its 52-week high of ₹364.40 but above its 52-week low of ₹225.50.
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