Reduced debt, better business outlook spark rally in Aditya Birla Fashion

Shares of the company were up for 8th straight day, its longest winning streak in nearly six years

Shares of apparel retailing major, Aditya Birla Fashion and Retail (ABFRL) advanced more than 5 per cent on Monday, extending its run of gains for an 8th straight day – most since April 2015 – as the street rejoices the reducing debt burden and improving business outlook for the company.

Rising debt levels and adverse working capital cycle have acted as a key overhang for the stock in recent years. ABFRL's net debt increased by 28 per cent to Rs 2,500 crore in FY20 as compared to Rs 1,953 crore in FY18. This was primarily led by higher capex, inorganic