Jefferies has reiterated a buy rating on Aditya Birla Fashion & Retail Ltd (AB Fashion) with a target price of ₹100, implying a potential upside of around 15% from the current market price of ₹87.15.
In its Q4FY25 update, the brokerage noted a decent overall performance, supported by several positives. Pantaloons saw a strong margin uptick, while losses from TMRW—ABFRL’s digital-first portfolio—were lower compared to previous quarters.
The ethnic wear segment (excluding TCNS) posted over 40% growth along with better margins, reaffirming the company’s strategic focus in this high-potential category. Additionally, lifestyle brands recorded healthy same-store sales (SSS), indicating stable consumer demand.
However, Jefferies flagged a lower-than-expected net cash position, calling it a key miss versus its internal estimates. Still, the brokerage believes the business is on solid footing, with improved profitability in core verticals likely to drive valuation re-rating.
Disclaimer: This article is for informational purposes only and is based solely on brokerage reports and publicly available data. It does not constitute investment advice or a recommendation to buy or sell any securities. Readers are advised to consult a certified financial advisor before making any investment decisions.
