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
She’s managed to retain her staff of five at the store, which sells one of the largest assortments of woks and other Chinese cookware. She has a basement that functions as her warehouse, where she and her staff do most of the packaging. Before the pandemic, online sales made up half of her business, but now it’s closer to 70%, she said. She averages 50 shipments a day, an increase of roughly 20% from mid-March, though revenue is down about 20%. It used to average about $40,000 per month, she said. … [Read more...] about Will e-commerce help small business survive coronavirus fallout?
Responding to the U.S. move, Ontario provincial premier Doug Ford said, “When the cards are down, you see who your friends are.” The action has been roundly decried as unfair and unkind in news reports around the world. And 3M blasted the U.S. government order as a shortsighted one that would have humanitarian implications and possibly spark retaliation from allies. … [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
But the business owners charged “aren’t criminals,” he said. “These are people just trying to survive, and many might not fully understand the rules. It’s more important to explain the rules to them than to charge them.” … [Read more...] about Will small-business owners go to jail for breaking coronavirus rules? We’ll find out