Aditya Birla Fashion Analyst Meet Takeaways - Focus On Scaling Up New Businesses: ICICI Securities
A customer browses merchandise at a Pantaloons department store, operated by Pantaloon Retail India Ltd., at Ambience Mall in New Delhi. (Photographer Graham Crouch/Bloomberg)

Aditya Birla Fashion Analyst Meet Takeaways - Focus On Scaling Up New Businesses: ICICI Securities

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.

ICICI Securities Report

Aditya Birla Fashion and Retail Ltd.’s management, at its recent first-ever annual investor day update call unveiled its five years’ growth strategies.

Key takeaways include

1. targeting 15% revenue compound annual growth rate over FY20-26E with ~360 basis points margin expansion to ~11% resulting in 3.4 times FY20 Ebitda and pre-tax return on capital employed of ~25% by FY26E;

2. free cash flow generation of Rs 10 billion after incurring capex of Rs 20-25 billion over FY22-26E;

3. new businesses (including innerwear and ethnic wear) are expected to grow more than 30% CAGR on a low base and constitute ~22% of revenue by FY26E from less than 10% in FY20.

Click on the attachment to read the full report:

ICICI Securities ABFRL_Analyst_Meet .pdf

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.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.