Buy Arvind; target of Rs 117: Nirmal Bang

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26 Aug, 2025 12:21

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Nirmal Bang is bullish on Arvind and has recommended buy rating on the stock with a target of Rs 117 in its June 12, 2012 research report.

“Arvind, we organised a conference call with Mr. Yashpal Jaiswal, aged 32-years, who has been working with Arvind since the past 13 years at the Naroda plant where the workers have gone on strike. Mr. Jaiswal is affiliated to Majur Mahajan Sangh (established in 1919), a major trade union. As the plant operates at 84mn metres (out of total 108) denim capacity, contributing ~37% to consolidated revenue in FY12, the strike will have a strong impact on the revenue/profitability of Arvind. Based on back of the envelope calculations, if the strike continues for 10 more days, then there may be a 1% decline in our consolidated revenue projection for FY13E, but it could impact operating profit/net profit by ~4%/8%, respectively, because of high operating/financial leverage.”

“We expect Arvind’s profits to be under pressure in 1QFY13 because of the workers’ strike and high-cost inventory. As a result of all this, the stock provides a good buying opportunity. We continue to remain positive on the stock,” says Nirmal Bang research report.    

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