Archive · 2 Sep 2025
HDFC Securities Initiates Coverage, Predicts Growth for Aditya Birla Lifestyle
HDFC Securities, a financial firm, is now recommending that people buy stock in Aditya Birla Lifestyle Brands (ABLBL), a company that sells clothing and related items.
This recommendation comes after ABLBL split from another company.
HDFC thinks ABLBL will grow a lot, with more sales and profits over the next few years.
They expect this growth due to a focus on selling things at full price, opening new stores, and making new brands successful.
The company plans to add many stores and become debt-free while also starting to pay dividends.
The company’s brands include popular names like Louis Philippe and Van Heusen, and HDFC Securities is optimistic about ABLBL's future as an independent company.
HDFC Securities initiated coverage of Aditya Birla Lifestyle Brands (ABLBL) post-demerger.
HDFC forecasts a 10% revenue and 19% EBITDA CAGR for ABLBL between FY25-28.
HDFC issued a 'Buy' recommendation with a target price of Rs 180 per share.
ABLBL plans to add 250 stores annually, reaching 4,500 stores by 2030.
The execution of growth strategies for brands like Reebok and American Eagle is critical.
- Who
- HDFC Securities initiated coverage on Aditya Birla Lifestyle Brands (ABLBL).
- What
- HDFC Securities predicts significant financial growth for ABLBL and issued a 'Buy' recommendation.
- When
- HDFC Securities commenced coverage after ABLBL's demerger from Aditya Birla Fashion and Retail (ABFRL) in May 2025.
- Where
- N/A
- Why
- HDFC Securities anticipates growth driven by factors including margin improvements, store expansion, and the maturation of emerging brands.
- Company
- Aditya Birla Lifestyle Brands (ABLBL)
- Target Price (HDFC Sec)
- Rs 180 per share
- Revenue CAGR (FY25-28)
- ~10%
- EBITDA CAGR (FY25-28)
- ~19%
- EBITDAM Improvement by 2028
- ~180 basis points to 8.9%
- Store Expansion Goal by 2030
- 4,500 stores
- Retail Space by 2030
- 7.3 million sq ft