Motilal Oswal - MOSL: Morning India (15/December/21): 1. Aditya Birla Fashion (ABFRL bags exclusive licensing rights for Reebok India – profitable biz with limited upfront investment); 2. NBFC; 3. ITC; 4. Lupin; 5. EcoScope (a

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EUR 120.00 For Business Accounts Only

MOSL: Morning India (15/December/21): 1. Aditya Birla Fashion (ABFRL bags exclusive licensing rights for Reebok India – profitable biz with limited upfront investment); 2. NBFC; 3. ITC; 4. Lupin; 5. EcoScope (a

MOrning India (15/December/21): 1. Aditya Birla Fashion (ABFRL bags exclusive licensing rights for Reebok India – profitable biz with limited upfront investment); 2. NBFC; 3. ITC; 4. Lupin; 5. EcoScope (a. 2QFY22 Corporate results; b. WPI inflation)

Today’s top research idea

Aditya Birla Fashion: ABFRL bags exclusive licensing rights for Reebok India – profitable biz with limited upfront investment

Aditya Birla Fashion and Retail Ltd (ABFRL) acquired Reebok India's current business and exclusive licensing rights for an investment of just INR750m-INR1b. Reebok India has steady revenue/EBITDA of INR4.3b/INR721m.
In our view, this is a highly value-accretive deal - ABFRL has acquired a strong and established Indian brand, with high visibility, for a very low upfront payment.
Sportswear is the fastest growing category in the Footwear market and has seen peers growing to 2-3x Reebok India's size over the last few years - this underscores high growth opportunity.
Reebok India, with FY20 EBITDA of INR721m, would form just 4% of ABFRL's estimated FY23E EBITDA. However, this could add incremental value of 8-10%, with scope in Athleisure, among others.

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15/12/2021 16 EN

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MOSL: Morning India (15/December/21): 1. Aditya Birla Fashion (ABFRL bags exclusive licensing rights for Reebok India – profitable biz with limited upfront investment); 2. NBFC; 3. ITC; 4. Lupin; 5. EcoScope (a

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

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