Motilal Oswal cuts Aditya Birla Fashion target to Rs 65 on debt drag, despite Q4 beat
Brokerage trims TP from Rs 70 to Rs 65 and stays Neutral. Pantaloons growth, TCNS loss reduction, and TASVA/OWND scale-up underpin a 13% revenue and 25% Ebitda CAGR through FY26-28E, but elevated net debt and unlikely pre-IND AS Ebitda breakeven by FY28 cap upside.
Motilal Oswal trims Aditya Birla Fashion target to Rs 65 from Rs 70, citing higher net debt despite strong Q4. Pantaloons growth, TCNS loss reduction, TASVA/OWND scale-up are catalysts; pre-IND AS Ebitda breakeven unlikely by FY28. Neutral stance reiterated.
Why this matters
Follows ABFRL's Q4 where loss widened 7x to Rs 164 cr even as revenue hit a 12-quarter high of 15.7% growth, reinforcing the debt-vs-topline tension Motilal Oswal flags.
Retail-company signals steady at 1,250 over the past 90 days.