BSE:535755

Stock Analysis Report

Aditya Birla Fashion and Retail

Executive Summary

Aditya Birla Fashion and Retail Limited manufactures and distributes branded fashion apparel and accessories in India.

Snowflake

Fundamentals

High growth potential with solid track record.


Similar Companies

Share Price & News

How has Aditya Birla Fashion and Retail's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.4%

535755

1.0%

IN Luxury

1.4%

IN Market


1 Year Return

9.1%

535755

9.3%

IN Luxury

2.3%

IN Market

Return vs Industry: 535755 matched the Indian Luxury industry which returned 9.3% over the past year.

Return vs Market: 535755 exceeded the Indian Market which returned 2.3% over the past year.


Shareholder returns

535755IndustryMarket
7 Day-0.4%1.0%1.4%
30 Day10.2%4.8%2.7%
90 Day-1.2%6.0%-1.4%
1 Year9.1%9.1%10.2%9.3%4.3%2.3%
3 Year36.9%36.9%47.5%45.8%20.9%14.9%
5 Year65.5%65.5%105.1%101.4%41.2%28.2%

Price Volatility Vs. Market

How volatile is Aditya Birla Fashion and Retail's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Aditya Birla Fashion and Retail undervalued compared to its fair value and its price relative to the market?

46.19x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: 535755 (₹203.35) is trading above our estimate of fair value (₹73.87)

Significantly Undervalued: 535755 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 535755 is poor value based on its PE Ratio (46.2x) compared to the Luxury industry average (10.2x).

PE vs Market: 535755 is poor value based on its PE Ratio (46.2x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

Low PEG Ratio: 535755 is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: 535755 is overvalued based on its PB Ratio (11x) compared to the IN Luxury industry average (0.6x).


Next Steps

Future Growth

How is Aditya Birla Fashion and Retail forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

25.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 535755's forecast earnings growth (25.7% per year) is above the savings rate (7.6%).

Earnings vs Market: 535755's earnings (25.7% per year) are forecast to grow faster than the Indian market (18.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 535755's revenue (11.7% per year) is forecast to grow faster than the Indian market (11.4% per year).

High Growth Revenue: 535755's revenue (11.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 535755's Return on Equity is forecast to be high in 3 years time (20.6%)


Next Steps

Past Performance

How has Aditya Birla Fashion and Retail performed over the past 5 years?

74.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 535755 has become profitable over the past 5 years, growing earnings by 74.7% per year.

Accelerating Growth: 535755's earnings growth over the past year (134.5%) exceeds its 5-year average (74.7% per year).

Earnings vs Industry: 535755 earnings growth over the past year (134.5%) exceeded the Luxury industry 7.9%.


Return on Equity

High ROE: Whilst 535755's Return on Equity (23.6%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: 535755 has a higher Return on Assets than the Luxury industry average last year.


Return on Capital Employed

ROCE Improving: 535755 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Aditya Birla Fashion and Retail's financial position?


Financial Position Analysis

Short Term Liabilities: 535755's short term assets (₹33.7B) do not cover its short term liabilities (₹41.8B)

Long Term Liabilities: 535755's short term assets (33.7B) exceeds its long term liabilities (10.1B)


Debt to Equity History and Analysis

Debt Level: 535755's debt to equity ratio (119.2%) is considered high

Reducing Debt: 535755's debt to equity ratio has reduced from 182.6% to 119.2% over the past 5 years.

Debt Coverage: 535755's debt is well covered by operating cash flow (31%).

Interest Coverage: 535755's interest payments on its debt are not well covered by EBIT (1.5x coverage).


Balance Sheet

Inventory Level: 535755 has a high level of physical assets or inventory.

Debt Coverage by Assets: 535755's debt is covered by short term assets (assets are 1.978530x debt).


Next Steps

Dividend

What is Aditya Birla Fashion and Retail's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.5%industryaverage0.6%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 535755's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 535755's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 535755's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 535755's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 535755's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

What is the CEO of Aditya Birla Fashion and Retail's salary, the management and board of directors tenure and is there insider trading?

1.7yrs

Average management tenure


CEO

Ashish Dikshit (50yo)

1.7yrs

Tenure

₹57,473,000

Compensation

Mr. Ashish Dikshit serves as Managing Director of Aditya Birla Fashion and Retail Limited since February 1, 2018 and serves as its Director since February 01, 2018. Mr. Dikshit serves as the President of M ...


CEO Compensation Analysis

Compensation vs. Market: Ashish has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Indian market.

Compensation vs Earnings: Ashish's compensation has increased by more than 20% in the past year.


Management Age and Tenure

1.7yrs

Average Tenure

48.5yo

Average Age

Experienced Management: 535755's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

4.7yrs

Average Tenure

62.5yo

Average Age

Experienced Board: 535755's board of directors are considered experienced (4.7 years average tenure).


Insider Trading

Insider Buying: 535755 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell₹19,173,87619 Aug 19
Pranab Barua
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares100,000
Max Price₹194.06

Ownership Breakdown


Management Team

  • Chandrashekhar Chavan (47yo)

    Chief Human Resources Officer

    • Tenure: 0yrs
  • Jagadish Bajaj (53yo)

    Chief Financial Officer

    • Tenure: 1.5yrs
    • Compensation: ₹15.64m
  • R. Sathyajit (47yo)

    Chief Executive Officer of International Brands

    • Tenure: 0yrs
  • Ashish Dikshit (50yo)

    MD & Director

    • Tenure: 1.7yrs
    • Compensation: ₹57.47m
  • Biren Vora (54yo)

    Head of Sustainability

    • Tenure: 0yrs
  • Naresh Tyagi

    Chief Sustainability Officer

    • Tenure: 0yrs
  • Gopal Gopalakrishnan

    Chief Quality Officer

    • Tenure: 0yrs
  • Vishak Kumar (47yo)

    Chief Executive Officer of Madura Fashion & Lifestyle Division

    • Tenure: 2.9yrs
    • Compensation: ₹22.07m
  • Geetika Anand (33yo)

    Assistant VP

    • Tenure: 0yrs
    • Compensation: ₹7.93m
  • Neeraj Singh (59yo)

    Chief Information Officer

    • Tenure: 0yrs

Board Members

  • Pranab Barua (67yo)

    Non-Executive Director

    • Tenure: 10.8yrs
    • Compensation: ₹410.00k
  • Arun Thiagarajan (75yo)

    Independent Non-Executive Director

    • Tenure: 4.4yrs
    • Compensation: ₹410.00k
  • Sanjeeb Chaudhuri (66yo)

    Additional Independent Director

    • Tenure: 2.8yrs
    • Compensation: ₹410.00k
  • Sushil Agarwal (56yo)

    Non-Executive Director

    • Tenure: 10.2yrs
    • Compensation: ₹230.00k
  • Ashish Dikshit (50yo)

    MD & Director

    • Tenure: 1.7yrs
    • Compensation: ₹57.47m
  • Sukanya Anand (59yo)

    Independent Non-Executive Director

    • Tenure: 5yrs
    • Compensation: ₹410.00k

Company Information

Aditya Birla Fashion and Retail Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Aditya Birla Fashion and Retail Limited
  • Ticker: 535755
  • Exchange: BSE
  • Founded: 2007
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: ₹153.101b
  • Shares outstanding: 773.63m
  • Website: https://www.abfrl.com

Number of Employees


Location

  • Aditya Birla Fashion and Retail Limited
  • Piramal Agastya Corporate Park, Building 'A'
  • 4th and 5th Floor
  • Mumbai
  • Maharashtra
  • 400070
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
535755BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 2013
ABFRLNSEI (National Stock Exchange of India)YesEquity SharesININRJul 2013

Biography

Aditya Birla Fashion and Retail Limited manufactures and distributes branded fashion apparel and accessories in India. It operates through two segments, Madura Fashion & Lifestyle and Pantaloons. It offers ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 12:53
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.