Aditya Birla Fashion Q3 Review: Motilal Oswal Retains 'Neutral' On The Stock, Lowers Target Price — Here's Why

Recently, Aditya Birla Fashion successfully raised $490 million (Rs 42.4 billion) through QIP and preferential issuance to the promoter and Fidelity group, resulting in the complete deleveraging of the company..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Motilal Oswal Report.Aditya Birla Fashion and Retail Ltd.’s revenue growth remained muted at ~3% YoY (in line) in Q3 FY25. The growth was driven mainly by Ethnic and TMRW (to be part of demerged Aditya Birla Fashion), whereas growth remained muted in Lifestyle Brands (robust LTL offset by weak wholesale) and Pantaloons (shift in Pujo dates).Ebitda was up 15% YoY (11% beat), driven by broad-based improvement in profitability, with ~150bp YoY expansion in consolidated Ebitda margin.  Recently, Aditya Birla Fashion successfully raised $490 million (Rs 42.4 billion) through QIP and preferential issuance to the promoter and Fidelity group, resulting in the complete deleveraging of the company.  Management expects to complete the demerger in the next two-three months. After the demerger, Aditya Birla Fashion will start with a net debt of Rs 7 billion, while demerged Aditya Birla Fashion will have a net cash of Rs 13 billion. We raise our FY25-26E Ebitda by 6-7%, primarily led by better profitability in demerged Aditya Birla Fashion, while earnings improve sharply on account of lower interest costs after the recent fundraise. .Click on the attachment to read the full report:.Glenmark Pharma Q3 Results Review— Regulatory Compliance Critical For Turnaround In U.S. Says ICICI Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Aditya Birla Fashion Q3 Review: Motilal Oswal Retains 'Neutral' On The Stock, Lowers Target Price — Here's Why

Motilal Oswal reiterates Neutral rating with a target price of Rs 285.

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