Buy Arvind: target of Rs 122: Sharekhan

Sharekhan is bullish on Arvind has recommended buy rating on the stock with a target price of Rs 122 in its research report dated August 05, 2021.

Broker Research

August 10, 2021 / 20:37 IST

An Edelweiss research report for Q4FY21 says road tonnage continued to improve, evident in e-way bill generation (up 6% QoQ) and improved core trucking rentals. “We estimate tonnage would increase by three–five percent for truckers. Asset-light plays Mahindra Logistics and TCI Express remain our preferred picks due to their ability to scale up/down as the environment demands,” the report said. Edelweiss is bullish on Blue Dart Express due to the pandemic-induced boom in e-commerce and its leaner cost structure. It has retained a ‘buy’ call on Mahindra Logistics, TCI Express and Blue Dart Express.

26 Aug, 2025 12:21

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Sharekhan's research report on Arvind

Q1FY2022 was affected by production shutdowns in factories in South India, delayed buying by domestic players and supply constraints in export markets. Revenues stood at Rs. 1,439.4 crore and OPM at 7.2%. Denim and woven fabric volumes recovered to 8-9 million metres in June. Company is confident of achieving volumes of 24 million metres for denim, 30 million metres for woven fabric and 9 million pieces for garments. Price hikes of 7-8% with a lag and better operating leverage would help OPM improve sequentially. However, better picture on margins would emerge in H2FY2022.

Outlook

With strong export demand and an expected recovery in domestic demand and good growth in technical textiles, Arvind eyes a bounce-back in the coming quarters. We maintain a Buy on the stock with a revised PT of Rs. 122.

For all recommendations report, click here