Abfrl shares analysis

 


As of May 22, 2025, Aditya Birla Fashion and Retail Ltd (ABFRL) has experienced significant market activity due to the demerger of its Madura Fashion & Lifestyle (MFL) business.

📉 Stock Performance

Current Price: ₹88.80

52-Week Range: ₹88.80 – ₹364.40

Market Capitalization: Approximately ₹11,190 crore

Recent Decline: The stock fell over 67% on May 22, 2025, aligning with the record date for the demerger of MFL into a separate listed entity, Aditya Birla Lifestyle Brands Ltd (ABLBL). Shareholders will receive one ABLBL share for each ABFRL share held.

📊 Financial Overview

Revenue Growth (3-Year CAGR): 33.59%

Profit Growth (3-Year CAGR): 19.96%

Return on Equity (ROE): -15.83%

Operating Margin: -1.26%

Net Margin: -4.87%

Interest Coverage Ratio: Low

Promoter Holding: Decreased by 2.66% in the last quarter 

⚠️ Key Considerations

Demerger Impact: The significant drop in share price reflects the separation of MFL from ABFRL, adjusting the stock’s valuation to align with the value of the remaining business. 

Financial Health: ABFRL has a high debt-to-equity ratio and a low return on equity, indicating potential financial challenges.

Market Performance: The stock has underperformed its sector by 63.5% and has declined for three consecutive days, resulting in a total decline of 66.08% during this period.

🔮 Analyst Outlook

Analysts have set a 12-month price target range for ABFRL between ₹232.30 and ₹363.30, with an average target of ₹288.13, suggesting potential upside from current levels. 

📌 Conclusion

The recent demerger has significantly impacted ABFRL's stock price, reflecting the company's restructuring efforts. While the demerger aims to streamline operations and potentially unlock value, investors should closely monitor the company's financial health and market performance in the coming quarters.


Comments

Post a Comment

Popular posts from this blog

Nifty out look today 13/05/2025

Image
 As of Tuesday, May 13, 2025, the Nifty 50 index exhibits a bullish outlook, buoyed by positive geopolitical developments and favorable technical indicators. 📈 Market Overview On Monday, May 12, the Nifty 50 surged by 916.70 points (3.82%) to close at 24,924.70, marking its strongest single-day gain in over four years. This rally was primarily driven by the announcement of a ceasefire between India and Pakistan, coupled with progress in U.S.-China trade negotiations, which collectively improved investor sentiment . 🔍 Technical Analysis #Support Levels: Key support is identified at 24,350, with additional support at 24,590. Maintaining levels above these thresholds suggests continued bullish momentum . #Resistance Levels: Immediate resistance is anticipated at 25,200, with further resistance at 25,350 and 25,750. A sustained move above these levels could signal an extension of the current uptrend . #Market Sentiment: The India VIX, a measure of market volatility, declined by 14.73...
Read more

stock market analysis

Image
  Sensex Ends Higher Amidst Geopolitical Tensions Ahmedabad, May 7, 2025 - The Indian stock market witnessed a day of volatility but ultimately closed in positive territory, with the benchmark Sensex ending 106 points higher. 1 This came even as geopolitical tensions flared following India's launch of "Operation Sindoor," a series of missile strikes on alleged terror targets across the border. The day began with heightened uncertainty as news of the military action broke. The Sensex and Nifty both experienced significant swings in early trade, reflecting investor apprehension about the potential for escalation. However, the market demonstrated resilience as the day progressed, with buying interest emerging in key sectors. Market Movers: Defense Stocks Rally: Shares of defense-related companies saw a notable surge, with some counters gaining as much as 4%. This rally likely reflects expectations of increased defense spending amidst the current geopolitical climate. Bha...
Read more

Ola stock analysis 13/05/2025

Image
 As of May 13, 2025, here are the latest details on Ola Electric Mobility Ltd (NSE: OLAELEC): ### 📊 Stock Overview * **Current Price**: ₹50.20 * **Previous Close**: ₹51.60 * **Day's Range**: ₹45.89 – ₹46.95 * **52-Week Range**: ₹45.35 – ₹157.40 * **Market Capitalization**: ₹20,576.52 crore * **Volume**: Approximately 8.6 million shares traded ([Angel One][1], [TradingView][2], [Google][3], [Business News Today][4]) ### 📉 Performance Metrics * **Year-to-Date (2025)**: Down 34.57% * **Past 6 Months**: Down 59.34% * **Past 1 Year**: Down 47.81% ([Business Today][5], [Tickertape][6]) ### 🧾 Financial Indicators * **Price-to-Earnings (P/E) Ratio**: -11.51 (TTM) * **Earnings Per Share (EPS)**: ₹-4.13 * **Price-to-Book (P/B) Ratio**: 3.19 * **Book Value Per Share**: ₹14.90 * **Debt-to-Equity Ratio**: 0.51 * **Dividend Yield**: 0.00% ([Groww][7], [Business News Today][4]) ### 🧑‍💼 Shareholding Structure (as of March 2025) * **Promoters**: 36.78% * **Retail & Others**: 57.41% * **Mut...
Read more