There are always challenges in the competitive world of fashion and retail, but with their track record and brand recognition, Arvind Fashions Ltd seems poised to give it a solid shot. With its extensive range of brands spanning both casual and formal segments, Arvind Fashions Ltd has a wide market appeal. If they continue to innovate, capture emerging trends, and perhaps even expand their reach into new demographics or markets.
Arvind Fashions Ltd seems to have all the right ingredients for success with its stellar brand portfolio. From Calvin Klein to Tommy Hilfiger, they’ve got some heavy hitters in the fashion world. Now, as for hitting that 2k target (₹2,000 crores, right?), it’s definitely a lofty goal, but not impossible.
About Arvind Fashions
Arvind Fashions Ltd is a prominent player in the branded apparel, beauty, and footwear industry. With a diverse portfolio comprising both owned and licensed global brands, the company operates across various segments, catering to a wide range of consumer preferences.
Their brand presence spans numerous cities and stores, with a strong geographical distribution network encompassing exclusive brand outlets and key counters. The company has strategically invested in digital initiatives to strengthen its online presence, enhancing customer engagement and shopping experience.
Furthermore, Arvind Fashions Ltd has shown resilience by exiting unprofitable brands and focusing on strategic partnerships and alliances, such as the recent partnership with Flipkart. With a focus on direct-to-consumer channels, sustained marketing efforts, and digital sales momentum, the company aims to drive growth and enhance brand value in the coming years.
Recent News Around Arvind Fashions
- Sales growth of 7% despite challenging market conditions and a shift in the festive calendar, primarily driven by retail and MBO channels.
- Impressive profit growth of 59.9% CAGR over the last 5 years.
- Strong performance of B2C and Omni linkages, although B2B online sales are slow in the short term.
- Target set to increase EBITDA margin for Arrow and Flying Machine brands from low single-digit to 10%.
- U.S. Polo brand performing well, with plans to expand into women’s wear.
- Closure of IZOD and Aeropostale brands, with minimum royalty payments for a few more years.
- Expansion of U.S. Polo stores, with larger formats planned for future adjacencies.
- Adjacent categories proving to be profitable and contributing positively to margin and sales per square foot.
- Positive outlook for Flying Machine brand, with signs of growth and reduction in discounting.
- Improvement in debtor days from 78.0 to 46.2 days, indicating better management of receivables.
- Reduction in the company’s working capital requirements from 112 days to 74.3 days.
Arvind Fashions Q2 Fy2024 Key Points And Summary:
- Achieved 7% sales growth year-on-year, resulting in the highest ever Q2 revenues.
- Recorded a Retail LTL (Like-to-Like) of 9% despite challenging market conditions.
- Witnessed a steady improvement in EBITDA margins year-on-year, reaching 13.2%.
- Maintained a continued double-digit EBITDA margin profile for USPA & Tommy Hilfiger.
- Experienced over 15% growth across retail and MBO (Multi-Brand Outlets) channels year-on-year.
- Continued strong traction in online direct-to-consumer business, with a 65% growth year-on-year.
- Product innovation across brands, such as USPA liquid cotton Polo and Autopress shirts in Arrow, driving growth.
- Strong sell-throughs across brands for SS’23.
- Strong LTL performance coupled with a higher retail channel mix led to approximately 510 bps improvement in gross margin year-on-year.
- Achieved the highest ever EBITDA at ₹ 152 crores, representing an 11% growth year-on-year.
- Despite higher advertising spends by approximately 100 bps in Q2 year-on-year, EBITDA margins increased by about 50 bps.
- Made significant investments in advertising across all brands.
- Witnessed a 20% growth in footwear year-on-year and launched Flying Machine footwear.
- Added 46 EBOs (Exclusive Brand Outlets) during the quarter, with a total of 91 additions in the first half of the fiscal year.
- Achieved a Return on Capital Employed (ROCE) at approximately 14% (TTM).
Arvind Fashions Share Price Target 2024 To 2030
Arvind Fashions Share Price Target 2024
| When | Maximum Price | Minimum Price |
| January 2024 | ₹564.61 | ₹490.96 |
| February 2024 | ₹576.13 | ₹500.98 |
| March 2024 | ₹587.89 | ₹511.21 |
| April 2024 | ₹570.77 | ₹496.32 |
| May 2024 | ₹562.33 | ₹488.98 |
| June 2024 | ₹582.57 | ₹506.59 |
| July 2024 | ₹576.75 | ₹501.52 |
| August 2024 | ₹599.82 | ₹521.58 |
| September 2024 | ₹623.81 | ₹542.45 |
| October 2024 | ₹611.58 | ₹531.81 |
| November 2024 | ₹629.93 | ₹547.76 |
| December 2024 | ₹645.68 | ₹561.46 |
In 2024, Arvind Fashions’ share price is expected to fluctuate, with an upward trend anticipated throughout the year. Maximum prices are forecasted to steadily rise from ₹564.61 in January to ₹645.68 in December, indicating a consistent growth trajectory. Conversely, minimum prices are also projected to increase from ₹490.96 to ₹561.46 over the same period. This suggests a positive outlook for investors, with the expected price likely to continue its upward momentum, reaching higher levels than those observed in the preceding months.
Arvind Fashions Share Price Target 2025
| when | Maximum Price | Minimum Price |
| January 2025 | ₹658.59 | ₹506.61 |
| February 2025 | ₹675.48 | ₹519.60 |
| March 2025 | ₹701.82 | ₹539.86 |
| April 2025 | ₹688.06 | ₹529.28 |
| May 2025 | ₹668.02 | ₹513.86 |
| June 2025 | ₹698.08 | ₹536.98 |
| July 2025 | ₹684.39 | ₹526.45 |
| August 2025 | ₹705.56 | ₹542.74 |
| September 2025 | ₹730.25 | ₹561.73 |
| October 2025 | ₹749.24 | ₹576.34 |
| November 2025 | ₹767.97 | ₹590.75 |
| December 2025 | ₹787.17 | ₹605.51 |
In 2025, Arvind Fashions’ share price is expected to exhibit a robust upward trajectory, reflecting positive growth prospects. The maximum prices are anticipated to rise steadily throughout the year, starting from ₹658.59 in January and reaching ₹787.17 by December. Similarly, the minimum prices are projected to increase from ₹506.61 in January to ₹605.51 in December. This consistent upward trend suggests optimistic investor sentiment and confidence in the company’s performance. It is expected that the share price will continue to climb, offering potential opportunities for investors seeking growth in the coming year.
Arvind Fashions Share Price Target 2026 To 2030
| Year | Maximum Price (₹) | Minimum Price (₹) |
|---|---|---|
| 2026 | ₹826.53 | ₹578.57 |
| 2027 | ₹909.18 | ₹636.43 |
| 2028 | ₹1,272.85 | ₹636.43 |
| 2029 | ₹1,102.04 | ₹551.02 |
| 2030 | ₹1,432.65 | ₹1,002.85 |
In the upcoming years from 2026 to 2030, Arvind Fashions’ share price is expected to demonstrate substantial growth, reflecting positive market sentiment and strong performance. The maximum prices are projected to increase steadily over this period, reaching ₹826.53 in 2026, ₹909.18 in 2027, ₹1,272.85 in 2028, ₹1,102.04 in 2029, and ₹1,432.65 in 2030. Likewise, the minimum prices are anticipated to rise, indicating a consistent upward trend from ₹578.57 in 2026 to ₹1,002.85 in 2030. These projections suggest continued optimism and potential for significant returns for investors over the specified timeframe.
Arvind Fashions ‘s Financial Condition (Last 5 Years)
| Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | TTM | |
| Sales + | 4,219 | 4,644 | 3,614 | 1,912 | 3,056 | 4,421 | 4,543 |
| Expenses + | 3,977 | 4,350 | 3,390 | 1,911 | 2,864 | 3,949 | 4,046 |
| Operating Profit | 242 | 294 | 224 | 1 | 192 | 472 | 497 |
| OPM % | 6% | 6% | 6% | 0% | 6% | 11% | 11% |
| Other Income + | 5 | 4 | -2 | -134 | -67 | 49 | 45 |
| Interest | 96 | 131 | 278 | 183 | 135 | 155 | 158 |
| Depreciation | 139 | 153 | 421 | 238 | 233 | 239 | 253 |
| Profit before tax | 12 | 13 | -477 | -554 | -242 | 127 | 131 |
| Tax % | -12% | -67% | 16% | -8% | 2% | 32% | |
| Net Profit + | 13 | 21 | -399 | -596 | -237 | 87 | 83 |
| EPS in Rs | 1.48 | -35.31 | -51.08 | -20.19 | 2.76 | 1.82 | |
| Dividend Payout % | 0% | 0% | 0% | 0% | 0% | 36% |
Over the last five years, Arvind Fashions has experienced fluctuations in its financial performance. Sales saw a notable increase from 2018 to 2019, followed by a decline in 2020 likely due to market challenges such as the COVID-19 pandemic. However, there was a recovery in sales by 2021 and subsequent growth in the following years, reaching 4,543 in the trailing twelve months (TTM). Despite fluctuations in expenses, operating profit demonstrated resilience, particularly notable in 2022 and 2023, with an operating profit margin (OPM) of 11%.
Other income, although varying, remained relatively stable over the period, providing some cushion against operating expenses. Interest expenses, though fluctuating, seem to have been managed effectively, with a marginal increase over time. However, depreciation costs have shown a consistent upward trend, possibly indicating investment in fixed assets.
Profit before tax and net profit depict significant fluctuations, notably a dip in 2020 and 2021, possibly due to operational challenges and exceptional circumstances. The company’s earnings per share (EPS) also reflected these challenges, with negative figures in 2020 and 2021 but showing signs of recovery thereafter. Notably, the dividend payout percentage increased to 36% in the trailing twelve months, potentially reflecting improved profitability and confidence in the company’s financial stability. Overall, while facing challenges, Arvind Fashions has demonstrated resilience and a potential trajectory towards recovery and growth.
FAQS
What is the market capitalization of Arvind Fashions Ltd?
Arvind Fashions Ltd has a market capitalization of ₹6,856 crore.
What is the current stock price of Arvind Fashions Ltd?
The current stock price of Arvind Fashions Ltd is ₹516.
What is the highest and lowest price the stock has reached recently?
The highest price reached recently is ₹534, and the lowest is ₹261.
What is the Price-to-Earnings (P/E) ratio of Arvind Fashions Ltd?
The stock’s P/E ratio is 188.
What is the book value per share of Arvind Fashions Ltd?
The book value per share of Arvind Fashions Ltd is ₹68.1.
What is the dividend yield of Arvind Fashions Ltd?
The dividend yield of Arvind Fashions Ltd is 0.20%.
What is the Return on Capital Employed (ROCE) of Arvind Fashions Ltd?
The ROCE of Arvind Fashions Ltd is 13.7%.
Should one invest in Arvind Fashions?
Arvind Fashions Ltd, a prominent player in the branded apparel, beauty, and footwear sectors, possesses a diverse portfolio of owned and licensed global brands. Despite recent challenges in the retail sector, the company has demonstrated resilience, with a current stock price of ₹516 and a market capitalization of ₹6,856 crore. The stock’s P/E ratio stands at 188, reflecting investor confidence in its growth potential. However, it’s noteworthy that the stock is trading at 7.55 times its book value, indicating a relatively high valuation.
Examining its financial performance, Arvind Fashions has exhibited mixed results. While the company has achieved a significant profit growth of 59.9% CAGR over the last five years and improved debtor days from 78.0 to 46.2 days, it also faces challenges. Notably, the company’s sales growth has been modest at 0.94% over the past five years, and it has a low return on equity of -36.7% over the last three years.
In terms of liquidity, the company’s cash flows have shown fluctuations, with a net cash flow of ₹91 crores in the last fiscal year. However, its interest coverage ratio is relatively low, indicating a potential risk regarding debt management.
Considering the peer comparison, Arvind Fashions stands out with its strong brand portfolio and significant market presence. Yet, it’s essential to weigh the pros and cons before making an investment decision.
However, thorough research and analysis of the company’s financials, market dynamics, and competitive positioning are essential to make informed investment decisions. Investors should also consider their risk tolerance and investment objectives before committing capital to the stock.
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