Aditya Birla Fashion and Retail Ltd.
ISIN: INE647O01011 • Market Cap: ₹6,630 Cr
The 5-Pillar Quality Audit for Aditya Birla Fashion and Retail Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (8.3%), Return on Capital Employed (-2.4%), and equity compounding (—).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.32 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (9.1%) and 3Y PAT CAGR (—).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of — vs PEG of — and Dividend Yield of —.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 46.6%, backed by 18.6% institutional ownership.
Key Fundamental Strengths
Consistent Market Standing (Mid Cap)
Established player in the Consumer Services sector with an overall fundamental quality score of 50/100.
Areas to Watch & Potential Risks
Subdued Capital Efficiency (ROCE: -2.4%)
A sub-12% ROCE suggests return on capital barely exceeds the company's weighted average cost of capital (WACC).
Sectoral & Macro Headwinds (Consumer Services)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Consumer Services space.
Quantitative Strategy Eligibility
Checking ABFRL against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 50/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Consumer Services Sector Peer Comparison
Compare ABFRL directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Aditya Birla Fashion and Retail Ltd. (ABFRL)Current | 50/100 | ₹6,630 Cr | — | -2.4% | 0.32 | — |
| Eternal Ltd. (ETERNAL) | 61/100 | ₹3.09 Lakh Cr | 713.64 | 2.9% | 0.00 | View |
| Avenue Supermarts Ltd. (DMART) | 66/100 | ₹2.60 Lakh Cr | 84.88 | 16.4% | 0.04 | View |
| Trent Ltd. (TRENT) | 74/100 | ₹1.57 Lakh Cr | 86.78 | 29.6% | 0.07 | View |
| Lenskart Solutions Ltd. (LENSKART) | 63/100 | ₹1.11 Lakh Cr | 169.67 | 8.4% | 0.03 | View |
| Indian Hotels Co. Ltd. (INDHOTEL) | 75/100 | ₹1.03 Lakh Cr | 48.02 | 16.0% | 0.00 | View |
Frequently Asked Questions: Aditya Birla Fashion and Retail Ltd.
Q:What is the 5-Pillar Fundamental Score for Aditya Birla Fashion and Retail Ltd. (ABFRL)?
Aditya Birla Fashion and Retail Ltd. has a RupeeTools Fundamental Score of 50/100, placing it in the 'Moderate / Average' category. Its pillar scores are: Profitability (30/100), Financial Health (73/100), Growth (55/100), Valuation (15/100), and Ownership Quality (70/100).
Q:Is ABFRL fundamentally strong for long-term investment?
ABFRL currently holds a moderate quality rating of 50/100. While it operates in the Consumer Services sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does ABFRL pass the Coffee Can Investing filter?
No. ABFRL does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does ABFRL compare against other Consumer Services peers?
Within India's Consumer Services sector, ABFRL trades at a P/E of — and generates an ROCE of -2.4%. Compare its 5-Pillar score of 50/100 against top sector peers like Eternal Ltd. (61/100), Avenue Supermarts Ltd. (66/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.