Sell Aditya Birla Fashion and Retail, target price Rs 280: Edelweiss

Edelweiss has sell call on Aditya Birla Fashion and Retail with a target price of Rs 280. The current market price of Aditya Birla Fashion and Retail Ltd. is Rs 300.3. Edelweiss Financial Services recommended to keep stop loss at Rs 315.

Aditya Birla Fashion and Retail, incorporated in the year 2007, is a Large Cap company (having a market cap of Rs 28327.77 Crore) operating in Retail sector.

Aditya Birla Fashion and Retail key Products/Revenue Segments include Apparels, Homemart & Accessories, Commission, Scrap, Export Incentives, Other Operating Revenue and Other Services for the year ending 31-Mar-2022.

Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 3096.62 Crore, up 6.56 % from last quarter Total Income of Rs 2905.88 Crore and up 48.91 % from last year same quarter Total Income of Rs 2079.53 Crore. Company has reported net profit after tax of Rs 29.42 Crore in latest quarter.

The company’s top management includes Mr.Kumar Mangalam Birla, Mr.Arun Adhikari, Ms.Preeti Vyas, Mr.Nish Bhutani, Mr.Sunirmal Talukdar, Ms.Sukanya Kripalu, Mr.Vikram Rao, Mr.Vishak Kumar, Ms.Sangeeta Pendurkar, Mr.Ashish Dikshit, Mr.Himanshu Kapania, Mr.Yogesh Chaudhary. Company has S R B C & Co. LLP as its auditors. As on 30-09-2022, the company has a total of 94 Crore shares outstanding.

Investment Rationale
Struggling to close above Rs 320; ended at a 3-month low on closing basis indicating short build up.

Promoter/FII Holdings
Promoters held 56.08 per cent stake in the company as of 30-Sep-2022, while FIIs owned 13.24 per cent, DIIs 18.97 per cent.