Sumary of ABFRLÃ¢ÂÂs stock falls 15 percent from highs; improving demand, growth outlook key positives ahead:
- Shares of Aditya Birla Fashion and Retail Ltd (ABFRL) fell more than 5 percent on November 26 on the National Stock Exchange (NSE) when the broader market was weak as well.
- This means that the stock is now down around 15 percent from its 52-week high of Rs 310 a share seen on November 10 on the NSE.
- ABFRL’s entry into ethnic-wear, accounting for about 30 percent of the industry, boosts the total addressable market significantly.
- This meant revenue recovery stood at about 90 percent of Q2FY20, which was a pre-pandemic quarter.
- In Q2FY22, the recovery in lifestyle brands under which several of its clothing labels are grouped stood at around 92 percent vis-à-vis Q2FY20, whereas the recovery in its value-fashion offering Pantaloons brand lagged at 73 percent of pre-Covid level.
- Pantaloons’ performance was relatively weaker owing to a larger share of mall stores that had prolonged restrictions.