Invest in Aditya Birla Fashion & Retail

K. Aravind

Aditya Birla Fashion and Retail is the largest fashion chain in the country. The company has more than 7,000 stores in 375 cities. It also has over 2,000 specialty Aditya Birla fashion and retail stores. Formerly known as Pantaloon Fashion and Retail, the company has changed its name to Aditya Birla Fashion and Retail after merging with Madurai Fashion and Lifestyle.

Sales in companies in the lifestyle and retail sector are improving. Factors such as high-level industrialisation, growth in the service sector, and improved employment opportunities have contributed to an increase in people’s disposable income. This has led to new lifestyles and changes in consumption patterns. Consumers, especially young people, have developed a habit of buying high quality products without giving much importance to the price. These changing habits have led to the opening up of new opportunities for the fashion and lifestyle market in India.

The fashion and lifestyle market in India is expected to grow at an average annual rate of 12% over the next five years. The current turnover in the fashion-lifestyle market is Rs 2,21,000 crore. It is expected to grow to Rs.3,94,000 crore in the next five years. The apparel market, which accounts for 57.2 per cent of the lifestyle market, is expected to grow by 59.9 per cent by the end of 2020.

Some of the leading companies in this field are turning to rapid change and growth. This opens up new opportunities for equity investors. The profitability ratios of these companies, which are currently reducing their debt, are improving. The steady increase in revenue indicates that the future prospects of these companies are good. Aditya Birla Fashion & Retail is one of the best stocks for investors to consider from the retail and lifestyle sector.

Aditya Birla Fashion & Retail has recorded loss in the April-June quarter of the current financial year due to the lockdown move. However, the company performed better than the market expected. The company incurred a loss of Rs 410 crore.