The shares of the leading retail fashion giant is in the news after rumors that Flipkart (the E-Commerce giant) is eyeing to offload its stake in the company. In this article, we will discuss more on this.
With a market capitalization of Rs 9,319 crores, the shares of Aditya Birla Fashion & Retail Ltd are currently trading at Rs 76.81 per share, down by 37 percent from its 52-week high of Rs 121.74 per share. Over the last five years, the stock has delivered a negative return of 44 percent.
On Wednesday, Aditya Birla Fashion & Retail shares nosedived over 11 percent from its previous day closing price after reports suggested that Flipkart may sell its entire 6 percent stake in the company through a clean-out block trade.
According to sources, the floor price is set at Rs 79.5 per share, which is a discount of 7.54 percent from its previous day closing price of Rs 85.98 per share. The size of the entire deal is estimated to be around Rs 600 crores, with Goldman Sachs as the rumored investment banker facilitating the transaction.
Financial Highlights
Aditya Birla’s retail chain reported a consolidated revenue of Rs 7,355 crores in FY25, down 47.44 percent from its FY24 revenue of Rs 13,996 crores. Additionally, the company reported a loss of Rs 456 crores, which shrank a little from its FY24 net loss of Rs 736 crores.
The stock has delivered a negative ROE and ROCE of 11.83 percent and 2.40 percent respectively, and has a debt-to-equity ratio of 0.74x with a negative interest coverage ratio of 0.55x.
Aditya Birla Fashion and Retail Limited (ABFRL) is one of India’s leading fashion companies. It designs, manufactures, and sells a wide range of apparel, footwear, and accessories across various brands. ABFRL operates both premium and mass-market brands, catering to different customer segments through its retail stores, online platforms, and wholesale channels. The company focuses on delivering trendy, quality fashion products to consumers across India and internationally.
Written by Satyajeet Mukherjee
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