BQ Blue’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 BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Aditya Birla Fashion and Retail Ltd. acquired Reebok India’s current business and exclusive licensing rights for an investment of just Rs 750 million– Rs 1 billion. Reebok India has a steady revenue/Ebitda of Rs 4.3 billion/Rs 721 million.
In our view, this is a highly -accretive deal – Aditya Birla Fashion has acquired a strong and established Indian brand, with high visibility, for a very low upfront payment.
Sportswear is the fastest growing category in the footwear market and has seen peers growing to two to three times Reebok India’s size over the last few years – this underscores high growth opportunity.
FY20 Ebitda of Rs 721 million (for Reebok India) is just 4% of Aditya Birla Fashion’s estimated FY23E Ebitda. However, it could add incremental of 8–10%, with scope in athleisure, among others.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BloombergQuint 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 BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
As a Subscriber you get
Stories
RECOMMENDED FOR YOU
POPULAR