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

With Aditya Birla Fashion and Retail Limited's revenues forecasted to be lower than last year's, investors are expected to be cautious. A decline in revenue typically harms the company's bottom line, reducing profitability and making investors less confident about the company's ability to sustain its financial health.

Financial Ratios:

currentRatio 1.433000
forwardPE 10.533871
debtToEquity 84.682000
earningsGrowth 0.000000
revenueGrowth -0.456000
grossMargins 0.558430
operatingMargins -0.129370
trailingEps -6.500000
forwardEps 6.200000

The current ratio for ABFRL is 1.433, indicating that the company can service its short-term debt using available cash and assets. This suggests ABFRL has strong liquidity, with more than enough resources to meet its immediate financial commitments.
Aditya Birla Fashion and Retail Limited's Forward PE is positioned well, reflecting a favorable balance between stock price and earnings. The stock isn't overpriced, offering room for growth and making it a potentially rewarding investment as its value has room to rise further.
ABFRL's high debt-to-equity ratio indicates that the company is using more debt than equity to fund its operations. This high leverage could expose the company to greater financial risk, especially during periods of declining profitability.
ABFRL's low earnings and revenue growth point to a potential decline in profits. This signals a downturn in financial performance, suggesting that the company might face challenges in maintaining its current level of profitability.

Price projections:

Price projections for ABFRL
Price projections for ABFRL

ABFRL's price projections have been revised downward gradually, suggesting that expectations for the company's future performance are becoming more conservative. Analysts may be tempering their optimism based on current trends.

Recommendation changes over time:

Recommendations trend for ABFRL
Recommendations trend for ABFRL


The recent sell bias from analysts toward Aditya Birla Fashion and Retail Limited suggests investors should exercise caution. Instead of acting on this bias alone, it's important to evaluate a broader range of market indicators to make more balanced and informed decisions regarding the stock's future prospects.