ABFRL management at their recent meet (March 2021) gave segment wise sales and margin forecasts to be achieved in FY26 for individual business segments discussed in this report. Each segment did have good detailing on how they will go about achieving the numbers and the business strategy behind it. Stock is broadly flat at ~Rs200 levels since the meet happened suggesting that the street wants execution and not just rosy projections.
It is worth pointing out that in retailing businesses, focus has trumped overdiversification in the past. Most successful names today are known to do well in their core formats or categories and stick to that. This is the case globally as well. There is a risk that ABFRL is trying to do too many formats and categories and is trying to be too many thins to too many people. This is they key risk in this business in terms of whether they can create large incremental market cap over the coming years in the way retailers/ brands like Trent, Dmart or Page have.