Jefferies has initiated coverage on Aditya Birla Fashion and Retail Ltd (ABFRL) with a Buy rating and a target price of ₹315, highlighting a decisive shift towards profitable growth and disciplined execution.
According to Jefferies, ABFRL is taking strong strategic steps, including consolidation of its core business and a pause on acquisitions. The upcoming split of the company—into ABLBL (housing lifestyle brands) and residual ABFRL—is expected to unlock value and sharpen focus.
The firm projects a revenue CAGR of 10-11% over FY25-27, supported by modest margin expansion and strong free cash flow generation. With lifestyle brands under ABLBL showing rising FCF, and losses in other segments expected to narrow, the brokerage sees scope for meaningful upside over the next few years.
Disclaimer: The above views are of the broker’s and not the author or the publication’s. Please make any and every investment decision after consulting your financial advisor.
