HDFC Securities has downgraded Aditya Birla Fashion & Retail to add from buy with a target price of Rs 120, based on 23 times FY22 EV/EBITDA. According to the brokerage, the company delivered a reasonable FY20 (pre-Covid) normalized revenue/EBITDA growth of 12/15 per cent to Rs 90.8/7.1 billion respectively as both Madura and Pantaloons performed well. Rep. Revenue/Adjusted EBITDA, however grew 7.7 per cent/declined 16 per cent year on year to Rs 87.4/4.7 billion respectively. as the lockdown disrupted demand in March 2020. For the fourth quarter, revenue declined 5 per cent to Rs 18.2 billion against the brokerage estimate of Rs 17.63 billion). However, margins disappointed at -3.1 per cent vs the brokerage estimate of -1 per cent). In the earnings call, the management said that the first 11 months of FY20 were going in line with the company’s plans leading to an almost perfect year. It was only with the advent of Covid-19 that led to an economic standstill negatively … [Read more...] about Add Aditya Birla Fashion & Retail, target price Rs 120: HDFC Securities
“I always knew we were going to expand to online sales, but COVID-19 pushed us to do that. It’s important to reach a wider audience,” Tang said. “As soon as we launched, we immediately saw some purchases, mostly from folks who already shopped with us.” While online revenue hasn’t offset the decline of in-store sales, Tang said she’s investing a lot more into her e-commerce operations for longevity, taking note of items that sell better online such as games, hair accessories and kitchen and dining items, which spiked upwards of 88% since her launch on March 25. … [Read more...] about Will e-commerce help small business survive coronavirus fallout?
The lights are not visible to Canadian citizens, but are pointed in the direction of the American border. That one-way message of encouragement provides a symbol of the goodwill that remains in Canada for the U.S. – as well as a reminder of the consequences of different government actions on either side of the border. … [Read more...] about Shuttered Canada-US border highlights different approaches to the pandemic – and differences between the 2 countries
A bankruptcy filing doesn't necessarily mean a company will go out of business. Many use bankruptcy to shed debt and other liabilities while closing unprofitable operations, in hopes of emerging leaner and stronger. Lots of these companies have gone on to post record profits, including automaker General Motors (GM)and many of the nation's airlines. … [Read more...] about 6 companies that filed for bankruptcy in May
Hamptons 818, he said, had switched to takeout and delivery in March when dine-in service was outlawed. “But sometimes when our regular customers were waiting to pick up their food, I offered them a drink on the house, just to be hospitable,” he said. … [Read more...] about Will small-business owners go to jail for breaking coronavirus rules? We’ll find out