Aditya Birla Lifestyle Brands Ltd share price: ABLBL, part of the Aditya Birla group, has recently posted its Q4 results on May 7. The company manages a high-end portfolio including iconic brands like Louis Philippe, Van Heusen, Allen Solly, Peter England, American Eagle and others.
Following the Aditya Birla Lifestyle Brands Q4 results, the brokerage firm, Morgan Stanley, Nuvama Research, and Emkay shared their outlook on this retail stock. Here’s what they said.
Aditya Birla Lifestyle Brands Ltd share price: Morgan Stanley’s overweight stance – Check latest target price
- The brokerage highlights the company’s management guidance for continued double-digit growth in FY27
- L2L growth guidance stands at 7 per cent, with 250-300 gross store additions planned
- Lifestyle brands’ margin improvement to continue gradually in FY27
- Emerging businesses expected to see faster margin expansion
- Reebok’s growth momentum remained strong with 30 per cent FY26 growth
- Van Heusen innerwear expected to break even by Q3FY27
- The company aims to become net debt-free over the next three years
- Morgan Stanley sees rerating potential on consistent execution and low starting valuations.
Aditya Birla Lifestyle Brands Ltd share price: Nuvama maintains BUY rating – Check latest target price
The brokerage firm, Nuvama Research, maintains a ‘Buy’ rating on Aditya Birla Lifestyle Brands with a revised target price of Rs 160 (earlier Rs 179). Here’s why.
- The brokerage firm highlights the company’s emerging brands, driving profitability.
- Leading player in India’s Premium western wear segment
- Management plans to improve the expansion momentum in FY27
- Management guided for a capex of Rs 3 billion in FY27
- Management guided being net debt-free over the next three years
- Tweaked FY27E/28E revenue and EBITDA by +0.4/-4.9% and +1.4%/-1.3%, respectively
- Trimmed valuation multiple to 23x FY28 pre-Ind-AS EBITDA from 25x earlier
- The brokerage also shared key risks: History of capital allocation issues; Execution risk of growth strategies; Intense competition; Macroeconomic sensitivity.
Aditya Birla Lifestyle Brands Ltd share price: Emkay maintains BUY rating – Check latest target price
The brokerage firm, Emkay, maintains a BUY on ABLBL and TP of Rs 140 (20x Mar-28E EBITDA), as Q4 EBITDA was largely in line with our expectations.
Revenue growth improved to 12 per cent in Q4 (vs 6% in 9M), helped by online growth acceleration and ramp-up of the B2B business, while growth for Lifestyle EBO/MBO channels remained in a high single digit.
However, ABLBL expects net adds to improve in FY27, with 300 gross additions.
In the emerging business, it expects healthy growth for Reebok, led by 50 store additions and strong LFL trends with product innovations; for VH Innerwear, it expects margin turnaround by FY28.
EBITDA margin was up by 30bps in Q4, led by 400bps margin expansion in the emerging segment and one-time PLI benefit of Rs 200 million in Q4.
The brokerage further highlights that ABLBL remains watchful of inflation in crude derivatives and a potential demand slowdown due to the rise in inflation, albeit with no major visible impact as of now.
Reflecting this, the brokerage trimmed its FY27 margin estimate, while its FY28 estimate is largely unchanged.
The brokerage remains positive on ABLBL, driven by low double-digit topline growth prospects and gradual margin gains with turnaround in emerging businesses.
Aditya Birla Lifestyle Brands Ltd share price: Q4 results
Aditya Birla Lifestyle Brands reported a strong Q4 FY26 performance, with net profit rising 42.3 per cent YoY to Rs 55 crore versus Rs 38 crore last year, while revenue grew 11.9 per cent YoY to Rs 2,174 crore from Rs 1,942 crore. EBITDA increased 14.3 per cent YoY to Rs 353 crore, and EBITDA margin improved slightly by 30 bps to 16.2 per cent, compared to 15.9 per cent in Q4 FY25.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
