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Buy Arvind Fashions; target of Rs 470: Anand Rathi

Anand Rathi is bullish on Arvind Fashions has recommended buy rating on the stock with a target price of Rs 470 in its research report dated January 13, 2022.

January 14, 2022 / 16:53 IST
     
     
    26 Aug, 2025 12:21
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    Anand Rathi's research report on Arvind Fashions

    With major headwinds for Arvind Fashions now past, we expect a revival in growth and better margins in its key Power brands. These account for 80%+ of its revenue and almost all its EBITDA. Hence, brighter prospects make us upbeat on the company. Ahead, it will concentrate on its six focus brands, optimise working capital via better inventory turns, and expand its network through franchisees. We expect more cash generation and better return ratios, and debt to shrink. Revenue would be 3.5% more each year (FY22-24) due to good revenue recovery. FY22e/FY23e/FY24e EBITDA are 7/18/ 7% higher, driven by sales growth and the higher Power-brand margins.


    Outlook

    We retain our Buy, with a revised TP of Rs470, on 11x FY24e EV/EBITDA.

    More Info on Trent

    At 16:00 hrs Arvind Fashions Limited was quoting at Rs 314.20, up Rs 16.05, or 5.38 percent.

    It has touched an intraday high of Rs 318.00 and an intraday low of Rs 292.40.

    It was trading with volumes of 19,775 shares, compared to its thirty day average of 11,368 shares, an increase of 73.95 percent.

    In the previous trading session, the share closed up 1.08 percent or Rs 3.20 at Rs 298.15.

    The share touched its 52-week high Rs 364.00 and 52-week low Rs 123.20 on 06 October, 2021 and 19 April, 2021, respectively.

    Currently, it is trading 13.68 percent below its 52-week high and 155.03 percent above its 52-week low.

    Market capitalisation stands at Rs 4,161.68 crore.
    For all recommendations report, click here

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    Broker Research
    first published: Jan 14, 2022 04:53 pm

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