Morgan Stanley gives thumbs up to Aditya Birla's retail brands
Morgan Stanley just gave a thumbs up to both Aditya Birla Fashion and Retail (ABFRL) and Aditya Birla Lifestyle Brands (ABLBL), rating them "Overweight."
This comes after the companies split in May 2025, making each business more focused for different types of investors.
ABFRL tagged as high-risk, high-reward bet
If you're watching the stock market, Morgan Stanley sees real potential here.
ABFRL is tagged as a high-risk, high-reward bet, with a possible 44% jump in share price.
ABLBL is considered steadier, offering growth through well-known brands like Louis Philippe and Reebok, with an estimated 20% upside—even after its share price dipped since its June 2025 IPO.
Split lets each company play to its strengths
The split lets each company play to its strengths: ABFRL is expected to boost profits by tightening operations before chasing big revenue growth, while ABLBL's steady brand lineup helped it post ₹24 crore profit on ₹1,840 crore revenue last quarter.
For young investors or anyone curious about retail stocks, these moves could be worth keeping an eye on.