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Fundamentals for Aditya Birla Fashion and Retail Limited
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Fundamentals for Aditya Birla Fashion and Retail Limited
Business Operations:
Sector: Consumer CyclicalIndustry: Apparel Manufacturing
Aditya Birla Fashion and Retail Limited designs, manufactures, distributes, and retails fashion apparel and accessories in India and internationally. It operates through three segments: Madura Fashion & Lifestyle, Pantaloons, and Ethnic & Others. The company offers shirts, trousers, denims, t-shirts, dresses, suits and blazers, casuals, ceremonial, and party wear; shorts, joggers, track pants, sweatshirts, jackets, loungewear, biker t-shirts, polos, chinos, kurtas and bottom wear, occasion wear, festive ensembles, streetwear, classic shirts, logo T-shirts, casual pants, lehengas and kurta sets, ethnic bottom wear, athleisure wear, workwear, tops, sleepwear, crops tops, skirts, jeans, and sportswear; accessories; and shawls, stoles, shoes, and lingerie, as well as home furnishings, footwear, handbags, bed linen, towels, smart table linen, dressy cushion covers, and others. It markets its products under the Louis Philippe, Van Heusen, Allen Solly, and Peter England brands; and ethnic wear products under the Sabyasachi, S&N by Shantnu & Nikhil, Tasva, House of Masaba, Jaypore, LoveChild, and Marigold Lane brands, as well as operates fashion store under the Pantaloons brand. The company holds online and offline rights to the India network of California-based fashion brand Forever 21; and international brands portfolio, such as The Collective, Simon Carter, American Eagle, Ralph Lauren, Hackett London, Ted Baker, and Fred Perry. The company was formerly known as Pantaloons Fashion & Retail Limited and changed its name to Aditya Birla Fashion and Retail Limited in January 2016. Aditya Birla Fashion and Retail Limited was incorporated in 2007 and is based in Mumbai, India.
Revenue projections:
ABFRL is projected to experience a revenue decline compared to last year, a development that often leads to investor caution. The drop could negatively impact the company's bottom line, as lower revenues typically signal reduced profitability, prompting more conservative investment strategies.
Financial Ratios:
| currentRatio | 0.000000 |
|---|---|
| forwardPE | 11.266129 |
| debtToEquity | 84.682000 |
| earningsGrowth | 0.000000 |
| revenueGrowth | -0.456000 |
| grossMargins | 0.552240 |
| operatingMargins | 0.088820 |
| trailingEps | -6.980000 |
| forwardEps | 6.200000 |
Aditya Birla Fashion and Retail Limited's Forward PE ratio suggests that the stock is priced appropriately in relation to its earnings. Not being overpriced, it offers room for growth, signaling potential upside for investors looking for a stock with reasonable valuation and growth potential.
ABFRL's high debt-to-equity ratio signals significant reliance on debt to finance its operations. This heavy leverage can increase financial risk, especially if the company faces a decline in revenue or struggles to meet its debt obligations.
With both earnings and revenue growth in low territory, ABFRL is likely to see shrinking profits. This signals a possible downturn in the company's financial health and may raise concerns about its future profitability.
Price projections:
Aditya Birla Fashion and Retail Limited's price has continuously remained near the lower end of analysts' projections, indicating that it may be facing challenges in meeting market expectations. This trend raises concerns about the company's future growth trajectory.
Recommendation changes over time:
Analysts have recently shown a sell bias for Aditya Birla Fashion and Retail Limited, signaling a need for caution. Investors should not rely solely on this sentiment but instead consider a variety of market indicators to make more informed decisions about the stock's future prospects and potential risks.
DISCLAIMER: We provide information and our musings based on events, but nothing on this site can be considered professional advice of any kind.
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