On 28 August 2024, Anand Rathi published research on the Arvind Fashions Ltd. In the research paper, Anand Rathi gave a “BUY” rating for Arvind Fashions with a share price target of Rs. 689 for 2024 and 2025. It indicates that the broker is very bullish on the stock.
For the past 4 to 5 financial years, the revenue of Arvind Fashions Ltd has been improving. In FY March 2023 and March 2024, the company has shown a net profit of Rs. 87 Crore and Rs. 137 Crore respectively. On the other side, the sales of the company is also improving over the years.
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About Arvind Fashions Ltd
Arvind Fashions Ltd is a well-known company in the fashion, footwear, and other area. The company has top brands that are widely popular among people like Arrow, Tommy Hilfiger, Calvin Klein, Flying Machine, and U.S. Polo Assn. The company was founded in 1931.
partneredArvind Fashions is involved in the business of manufacturing, marketing, and distribution of products of several owned and licensed brands. For manufacturing products, the company partnered with other companies.
The company has top brands that make it one of the leading companies in the industry. Arvind Fashions Ltd also working outside India to grow its business.
Company Analysis
Below you’ll find Arvind Fashions Limited’s company information like financials, fundamentals, and shareholding patterns. This information plays an important role in identifying good companies for investing.
Note: The information below is not enough for a complete analysis of any company or stock. Kindly cross-check this information with any screener or broker.
Note: All the values are in (₹) Rupees Crore.
| Quarter | Net Profit & Loss |
|---|---|
| Jun 2023 | -₹5 |
| Sep 2023 | ₹37 |
| Dec 2023 | ₹65 |
| Mar 2024 | ₹40 |
| Jun 2024 | ₹14 |
| Year | Net Profit & Loss |
|---|---|
| Mar 2020 | -₹399 |
| Mar 2021 | -₹596 |
| Mar 2022 | -₹237 |
| Mar 2023 | ₹87 |
| Mar 2024 | ₹137 |
Note: It is the company’s financial performance data, typically released every three months (quarterly) or once a year (annually).
| Market Cap | ₹7,441Cr | ROE | 5.83% |
| P/E Ratio (TTM) | 75.59 | EPS (TTM) | 7.39 |
| P/B Ratio | 7.42 | Div. Yield | 0.22% |
| Industry PE | 55.27 | Book Value | 75.32 |
| Debt to Equity | 1.14 | Face Value | 4 |
| Held By | Dec 2023 | Mar 2024 | Jun 2024 |
|---|---|---|---|
| FIIs | 16.76% | 15.73% | 15.58% |
| DIIs | 8.37% | 10.66% | 11.93% |
| Public | 38.09% | 36.82% | 37.27% |
| Promoters | 36.79% | 36.78% | 35.21% |
| Other Holders | 0.00% | 0.00% | 0.00% |
Key Points
Sales: In FY23, the company showed 4,069 sales and in the current FY24 the sales are 4,259. In short, the sales increased by 190. With the increases in sales, the expenses of the company also grew.
Net Profit: In FY23 the company made a net profit of Rs. 87 Crore and in FY24 the net profit was Rs. 137 Crore. Year-over-year the net profit of the company is grown by Rs. 50 Crore.
On QoQ, the net profit of the company declined by Rs. 26 Crore. As in the March 2024 quarter the net profit of Rs. 40 Crore and now in the June 2024 quarter the net profit is Rs. 14 Crore.
- High PE (PE>40).
- Low debt on the company.
- Promoters pledge more shares.
- FIIs are increasing their holdings in the company.
- The Profit Margins of the company are not stable.
- The quarterly net profit decreases from the last 2 quarters.
- The net Profit of the company has improved in the last 2 years.
Arvind Fashions Share Price Target 2024 and 2025
Over the last 2 years Arvind Fashions Ltd company shown good growth as the revenue, sales, net profit, etc. of the company is improving. Its sales and net profit improved by 190 and Rs. 137 Crore in the financial year.
Top brands like Flying Machine, Arrow, Tommy Hilfiger, Calvin Klein, and U.S. Polo Assn, etc. are very popular that’s why it’s easy for the company to attract people. That is why Anand Rathi is very bullish on Arvind Fashions’ share price target for 2024 and 2025 where they are expecting more than 25% return in a year.
Disclaimer: We are not SEBI registered, this post is only for educational purposes. We give the stock price targets based on analysts’ research, news, price action, etc. Please do research or talk to your financial advisor before making any decision.
Outlook
There are various reasons behind the “buy” rating from Anand Rathi and some of them are mentioned below.
Product: The company is continuing to innovate new products based on the latest and new fashion trends. As it is a marketing company, it is also investing in advertising.
More Outlets: Recently Arvind Fashions added 150+ retail outlets, which will increase the sales of their products.
DEBT Reduction: The company is planning to be debt free that’s why they are planning to pay the debt from the surplus cash.
There are a lot of things that are improving with time that will lead to achieving the Arvind Fashions share price target of Rs. 689 given by Anand Rathi.
FAQs
Recently Anand Rathi published/shared a research paper on the Arvind Fashions where a lot of information on the company and related industry was shared. After the company and its business analysis, Anand Rathi is expecting a stock target of Rs. 689 in the next 12 months.
As per analysis, Arvind Fashions is a good company as it started making a profit consistently in the last 2 years and the net profit and sales of the company is also improved yearly.
The company is also working on opening new brand outlets, reducing debt, investing in marketing and innovation, and many more things.
Also, the company has top brands like Flying Machine, Arrow, Tommy Hilfiger, Calvin Klein, and U.S. Polo Assn, etc. Some of these brands are very popular and have a large number of customers.
It’s up to you, In the research paper it is mentioned that do not take it as an investment advisory.
So, read the research paper published by Anand Rathi and cross-check all the info as per your investing and risk management strategy then plan your investments only on your risk. For any loss and profit only you’ll be responsible.
Final Words
Arvind Fashions’ share price target is Rs. 689 and it can be achieved in 12 months. Based on the company’s quarterly results, economic conditions, and industry/sector situations the brokers update the targets. As per the latest analysis by Anand Rathi where it give the target for years 2024 to 2025.
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