Moneycontrol

Budget 2023Budget 2023

PARTNERS

  • Tata AIA Life Insurance
  • Hafele
  • Motilal Oswal
  • SMC Global Securities Limited
  • SBI Life
  • DSP Mutual Fund
Upcoming Event : LeapToUnicorn - mentoring, networking and fundraising for startups. Register now

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 / 04:53 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

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.