Aditya Birla Fashion & Retail Faces Oversold Pressure: SEBI RA Advises Waiting For Price Stabilization

Aditya Birla Fashion & Retail Ltd (ABFRL) shows a cautious near-term future, according to SEBI-registered analyst Harika Enjamuri, who noted its deep oversold stock status and recommends investors wait until prices stabilize before opening new positions.

ABFRL's standalone fourth-quarter (Q4) results indicate operational recovery through a profit increase to ₹203 crore and the highest operating margin at 17% in ten quarters, but annual results show significant financial contraction. 

At the time of writing, ABFRL shares were trading at ₹88.80, up 2.36% or ₹2.05.

Between FY24 and FY25, standalone sales plunged to ₹5,609 crore from ₹12,351 crore, while net losses decreased marginally to ₹128 crore.

Enjamuri said that the stock has slipped past its significant support levels of ₹276, ₹242, and ₹234, while continuing to trade below key moving averages such as EMA100 at ₹259.55 and EMA70 at ₹252.80. 

The Relative Strength Index (RSI) is 14.79 in daily trading and 19.79 weekly, demonstrating strong oversold momentum. 

Panic selling triggered a trading volume spike of nearly 99 million shares after ABFRL's Madura Fashion & Lifestyle division went through a demerger.

The analyst finds support levels at ₹85, ₹80, and ₹70, with resistance at ₹120, ₹130, and ₹150. 

She believes a brief upward movement could happen because of overextended market conditions, but warns that the primary trend stays negative because of shrinking business scale and continuous profit challenges. 

Enjamuri said that following the Madura Fashion & Lifestyle demerger, ABFRL must focus on top-line growth and maintain cost discipline as essential recovery measures.

On Stocktwits, retail sentiment was ‘bullish’ amid ‘high’ message volume.

The stock has declined 68.5% so far in 2025.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Share

·

Add us on