Ashish Dikshit (left), Managing Director, Aditya Birla Lifestyle Brands Ltd and Ashish Chauhan, Managing Director & CEO, National Stock Exchange during the listing ceremony, in Mumbai, on Monday
| Photo Credit:
PTI
Shares of Aditya Birla Lifestyle Brands Ltd (ABLBL), demerged from Aditya Birla Fashion and Retail, were listed on the bourses on Monday and saw volatile session, as the stock hit both upper and lower circuit limits.
After listing at ₹167.75, the ABLBL stock jumped 4.97 per cent to hit a high of ₹176.10 during the day on the BSE but ended ₹4.97 per cent at ₹159.40. On the NSE, the stock opened at ₹167 and closed at ₹159, by 4.79 per cent.
ABLBL was demerged from Aditya Birla Fashion and Retail (ABFRL) in May’25 and comprises four industry-leading lifestyle brands (Louis Philippe, Van Heusen, Allen Solly and Peter England) and emerging brands such as Van Heusen Innerwear, Reebok and American Eagle.
As part of the demerger, shareholders of ABFRL (Record date: May 22) had received one share of ABLBL for each share held in ABFRL.
Motilal Oswal Financial has come out with a Neutral rating on ABLBL with a target price of ₹190.
“Driven by lower discounting, an improved channel mix and operating leverage benefits, we expect gross/EBITDA margin to expand about 80 bps/140 bps to 59 per cent/16.6 per cent by FY28E”.
Further, ABLBL could generate cumulative FCF of ₹1,100 crore over FY25-28E, which should help it to become a net-cash company (excluding leases), the brokerage said.
According to Motilal Oswal, Persistent weakness in demand could affect its store addition plan and SSSG for existing stores. Other key risks included a slower-than-expected scale-up of emerging brands, higher-than-expected rental and manpower cost escalations, capital misallocation through non-value-additive M&As and exit by shareholders (who invested for demerger gains or recent investors in ABFRL’s fund raise).
The stock of ABFRL closed at ₹74.65 on the BSE, up 1.21 per cent.
Published on June 23, 2025
