Street cautious on ABFRL amid weak performance in value segment

Revenue performance was led by lifestyle brands which grew 18 per cent with 5 per cent like-to-like growth

The stock of Aditya Birla Fashion Retail is down 10 per cent from its February high. Even as the revenue performance of the apparel retail major in the October-December quarter's for the 2022-23 financial year (Q3FY23) was better than expected, the company saw brokerage downgrades, given the weak operating performance and the pressure on margins. This the second consecutive quarter of margin miss despite strong traction on the sales front.

Ambit Capital downgraded the earnings per share estimates of the company for FY23 by a sharp 68 per cent. The revision was led by increase in marketing spends and losses