New Delhi, Sept. 11 -- Morgan Stanley has turned upbeat on two key Aditya Birla Group retail companies, upgrading Aditya Birla Fashion and Retail Ltd (ABFRL) to "Overweight" and initiating coverage on Aditya Birla Lifestyle Brands Ltd (ABLBL) with the same rating. The global brokerage believes both businesses are now well-positioned for a valuation re-rating as fundamentals begin to improve.

According to Morgan Stanley, the demerger of ABFRL in May 2025 has created two distinct businesses catering to different investor preferences. ABFRL offers a portfolio of growth-oriented businesses with higher execution risks - a classic "high risk, high reward" opportunity - whereas ABLBL represents a steady and relatively lower-risk play on India's...