Aditya Birla Fashion & Retail Ltd Stock Hits 52-Week Low at Rs.61.71

Stock Price Movement and Market Context

On 23 Jan 2026, ABFRL’s stock price reached an intraday low of Rs.61.71, representing its lowest level in the past year and an all-time low. Despite opening with a positive gap of 2.07% at Rs.64.96, the stock declined by 3.03% during the trading session, closing near the day’s low. This marks the fourth consecutive day of decline, with the stock losing approximately 14.2% over this period.

The stock’s performance today notably underperformed the Garments & Apparels sector by 2.32%. It is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward momentum. This contrasts with the broader market, where the Sensex opened flat but later declined by 0.86% to 81,601.20 points, reflecting a cautious market environment.

Long-Term Performance and Relative Benchmarking

Over the past year, ABFRL’s stock has delivered a negative return of 34.54%, significantly underperforming the Sensex, which posted a positive return of 6.66% during the same period. The stock’s 52-week high was Rs.104.60, highlighting the extent of the decline from its peak. Additionally, ABFRL has underperformed the BSE500 index over the last three years, one year, and three months, underscoring persistent challenges in maintaining competitive growth and investor confidence.

Financial Metrics and Fundamental Assessment

ABFRL’s financial indicators reveal areas of concern that have contributed to the stock’s subdued performance. The company’s long-term fundamental strength is rated weak, with an average Return on Capital Employed (ROCE) of just 2.09%. This low capital efficiency contrasts with industry expectations and highlights limited profitability relative to the capital invested.

Net sales have grown at a modest annual rate of 6.05% over the last five years, while operating profit has increased at an even slower pace of 4.64%. These growth rates suggest challenges in scaling operations and improving margins in a competitive garments and apparels sector.

Debt servicing capacity is another area of concern, with a high Debt to EBITDA ratio of 6.31 times. This elevated leverage ratio indicates significant financial obligations relative to earnings before interest, taxes, depreciation, and amortisation, potentially constraining the company’s financial flexibility.

Recent Quarterly Results Highlight Pressure Points

The company reported negative Profit Before Tax excluding Other Income (PBT LESS OI) of Rs.-387.60 crores in the September 2025 quarter, representing a decline of 32.93% compared to previous periods. Operating profit to interest coverage ratio was notably low at 0.55 times, signalling limited ability to cover interest expenses from operating earnings. The PBDIT for the quarter stood at Rs.68.81 crores, marking the lowest level recorded.

These figures underscore the financial strain faced by ABFRL in recent quarters, contributing to the cautious stance reflected in its stock price.

Valuation and Risk Considerations

The stock is currently trading at valuations considered risky relative to its historical averages. Despite the negative return of 34.54% over the past year, the company’s profits have only marginally increased by 2.2%, indicating a disconnect between earnings growth and market valuation. This disparity may reflect investor concerns about sustainability and growth prospects.

Institutional investors hold a significant stake of 26.26% in ABFRL, suggesting that well-resourced market participants are closely monitoring the company’s fundamentals and performance trends.

Mojo Score and Market Sentiment

Aditya Birla Fashion & Retail Ltd holds a Mojo Score of 3.0 and a Mojo Grade of Strong Sell as of 23 Oct 2025, upgraded from a previous Sell rating. The Market Capitalisation Grade stands at 3, reflecting the company’s mid-tier market cap status within its sector. These ratings encapsulate the current market sentiment and fundamental assessment, signalling caution.

The stock’s recent underperformance relative to the Sensex and sector indices, combined with its financial metrics, has contributed to this grading. The Sensex itself is trading below its 50-day moving average, although the 50-day average remains above the 200-day average, indicating mixed signals in the broader market.

Summary of Key Price and Performance Data

• New 52-week and all-time low: Rs.61.71

• Day’s high: Rs.64.96 (+2.07%)

• Day’s low: Rs.61.71 (-3.03%)

• Consecutive fall over 4 days: -14.2% returns

• 1-year stock return: -34.54%

• 1-year Sensex return: +6.66%

• 52-week high: Rs.104.60

• Debt to EBITDA ratio: 6.31 times

• Average ROCE: 2.09%

• Institutional holdings: 26.26%

Conclusion

Aditya Birla Fashion & Retail Ltd’s stock reaching a 52-week low at Rs.61.71 reflects a combination of subdued financial performance, elevated leverage, and market headwinds within the garments and apparels sector. The company’s modest sales and profit growth, coupled with recent quarterly losses and low interest coverage, have weighed on investor sentiment. While institutional investors maintain a significant stake, the stock’s valuation and fundamental metrics suggest a cautious outlook in the current environment.

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