Aditya Birla Fashion & Retail Analysis

dividend

Pros

Cons

• Unable to evaluate Aditya Birla Fashion and Retail's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
• Unable to evaluate Aditya Birla Fashion and Retail's dividend against the top 25% market benchmark as the company has not reported any payouts.

health

Pros

• Whilst loss making Aditya Birla Fashion and Retail has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -38.6% per year.
• Whilst loss making Aditya Birla Fashion and Retail has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
• Debt is well covered by operating cash flow (23.1%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 1.5x debt.
• Aditya Birla Fashion and Retail's cash and other short term assets cover its long term commitments.
• The level of debt compared to net worth has been reduced over the past 5 years (379.3% vs 255.8% today).

Cons

• Aditya Birla Fashion and Retail's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
• Aditya Birla Fashion and Retail is making a loss, therefore interest payments are not well covered by earnings.
• Aditya Birla Fashion and Retail's level of debt (255.8%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• Ashish's remuneration is lower than average for companies of similar size in India.
• The tenure for the Aditya Birla Fashion and Retail management team is about average.

Cons

• The average tenure for the Aditya Birla Fashion and Retail board of directors is less than 3 years, this suggests a new board.
• Ashish's compensation has increased whilst company is loss making.

misc

Pros

Cons

• Aditya Birla Fashion and Retail is not covered by any analysts.
• Aditya Birla Fashion and Retail has significant price volatility in the past 3 months.

past

Pros

Cons

• Unable to compare Aditya Birla Fashion and Retail's 1-year earnings growth to the 5-year average as it is not currently profitable.
• Aditya Birla Fashion and Retail does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
• Aditya Birla Fashion and Retail used its assets less efficiently than the IN Luxury industry average last year based on Return on Assets.
• It is difficult to establish if Aditya Birla Fashion and Retail improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
• It is difficult to establish if Aditya Birla Fashion and Retail has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
• Unable to compare Aditya Birla Fashion and Retail's 1-year growth to the IN Luxury industry average as it is not currently profitable.

value

Pros

• BSE:535755 is up 29% outperforming the Luxury industry which returned 9.8% over the past month.
• BSE:535755 is up 29% outperforming the market in India which returned 8% over the past month.

Cons

• Aditya Birla Fashion and Retail's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Aditya Birla Fashion and Retail's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Aditya Birla Fashion and Retail is overvalued based on assets compared to the IN Luxury industry average.
• Aditya Birla Fashion and Retail is loss making, we can't compare its value to the IN Luxury industry average.
• Aditya Birla Fashion and Retail is loss making, we can't compare the value of its earnings to the India market.
• 535755 underperformed the Luxury industry which returned -22.1% over the past year.
• 535755 underperformed the Market in India which returned -14.5% over the past year.