Overall Fundamental outlook

Business Operations:

Sector: Consumer Cyclical
Industry: 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:

Revenue projections for ABFRL
Revenue projections for ABFRL

Revenues for ABFRL are forecasted to decline from last year's levels, prompting caution among investors. When revenues fall, it can have a significant negative impact on the company's bottom line, reducing profitability and making the stock less attractive to risk-averse investors.

Financial Ratios:

currentRatio 1.43300
forwardPE 12.13871
debtToEquity 84.68200
earningsGrowth 0.00000
revenueGrowth -0.45600
grossMargins 0.55843
operatingMargins -0.12937
trailingEps -6.49000
forwardEps 1.90000

ABFRL's current ratio being 1.433 suggests the company will have no issues paying off its short-term debt. With sufficient cash reserves and current assets, ABFRL can easily cover its immediate liabilities, reflecting solid financial health.
ABFRL's Forward PE is at a healthy level, indicating that the stock price is well-positioned relative to its earnings. With the stock not being overvalued, there remains room for future growth, suggesting a balanced opportunity for investors seeking potential upside.
ABFRL's high debt-to-equity ratio indicates a high level of leverage, meaning the company relies significantly on debt for financing. This can increase financial risk, particularly in times of economic instability or reduced profitability.
Aditya Birla Fashion and Retail Limited's low growth in both earnings and revenue indicates the company's profits may decrease. This trend could signal a downturn in financial performance, suggesting that Aditya Birla Fashion and Retail Limited might struggle to maintain its current profit levels.

Price projections:

Price projections for ABFRL
Price projections for ABFRL

ABFRL's price has consistently remained near the lower edge of projections, suggesting that it is not fully meeting market expectations. This could indicate a need for improved performance or strategies to boost investor confidence.

Recommendation changes over time:

Recommendations trend for ABFRL
Recommendations trend for ABFRL


The sell bias toward ABFRL from analysts suggests caution, but investors are encouraged to consult a variety of market indicators before making decisions. This broader perspective will help mitigate risks and provide a clearer understanding of ABFRL's potential in the current market.