Morgan Stanley has shared a positive outlook on select Aditya Birla Group stocks, highlighting strong growth potential ahead. The brokerage believes Aditya Birla Fashion & Retail Limited and Aditya Birla Lifestyle Brands Limited could deliver solid returns, with an upside potential of up to 47 percent. Backed by improving fundamentals, profitability, and growth plans, these companies are seen as attractive opportunities for investors looking at the consumer and retail space.
Here are a few Aditya Birla Group Stocks to buy for an upside potential of 47 percent
Aditya Birla Fashion & Retail Limited
With a market capitalization of Rs. 10,951.89 crores, the share of Aditya Birla Fashion & Retail Limited has reached an intraday high of Rs. 92.34 per equity share, rising nearly 3.88 percent from its previous day’s close price of Rs. 88.89. Since then, the stock has retreated and is currently trading at Rs. 89.75 per equity share.
Morgan Stanley, a prominent brokerage firm, has recommended an “overweight with equal-weight ” call on Aditya Birla Fashion & Retail Limited with a target price of Rs. 131 per share, indicating an upside potential of 47.37 percent.
Rationale: Morgan Stanley has upgraded Aditya Birla Fashion and Retail, calling it an anti-consensus self-help story with scope for a valuation re-rating. The brokerage expects the company to deliver around 14 percent revenue CAGR and 27 percent EBITDA CAGR by FY27-28.
The brokerage also believes the firm is well-capitalized to support its growth plans. However, despite this outlook, investor confidence in the stock remains limited due to its past performance record.
Aditya Birla Fashion & Retail Limited was established in 1997. The company is engaged in designing, manufacturing, and retailing branded apparel and lifestyle products across India, offering fashion brands and serving millions through physical and online stores.
Coming into financial highlights, Aditya Birla Fashion & Retail Limited’s revenue has increased from Rs. 1,674 crore in Q1 FY25 to Rs. 1,831 crore in Q1 FY26, which has grown by 9.38 percent. The net loss of the company has increased from Rs. 215 crore in Q1 FY25 to Rs. 234 crore in Q1 FY26.
Aditya Birla Lifestyle Brands Limited
With a market capitalization of Rs. 18,194.60 crores, the share of Aditya Birla Lifestyle Brands Limited has reached an intraday high of Rs. 151.20 per equity share, rising nearly 5.26 percent from its previous day’s close price of Rs. 143.65. Since then, the stock has retreated and is currently trading at Rs. 149.10 per equity share.
Morgan Stanley, a prominent brokerage firm, has recommended an “overweight” call on Aditya Birla Lifestyle Brands Limited with a target price of Rs. 175 per share, indicating an upside potential of 21.82 percent.
Rationale: Morgan Stanley has initiated coverage on Aditya Birla Lifestyle Brands, stating that the company is at the cusp of improving fundamentals, driven by stronger profitability. The brokerage sees an opportunity for a valuation re-rating, positioning AB Lifestyle as a defensive discretionary play.
The brokerage expects the company to deliver a 10 percent revenue CAGR during FY25-28, along with gradual improvements in margins and return profile. Consistent execution, according to Morgan Stanley, could also lead to multiple expansions in the stock.
Aditya Birla Lifestyle Brands Limited (ABLBL) has been operational since 2025 after a vertical demerger from Aditya Birla Fashion and Retail Limited (ABFRL) and owns and operates some of India’s leading premium western wear and lifestyle brands.
Coming into financial highlights, Aditya Birla Lifestyle Brands Limited’s revenue has increased from Rs. 1,784 crore in Q1 FY25 to Rs. 1,841 crore in Q1 FY26, which has grown by 3.20 percent. The net profit has also grown by 4.35 percent from Rs. 23 crore in Q1 FY25 to Rs. 24 crore in Q1 FY26.
Written By – Nikhil Naik
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