172@29@17@144!~!172@29@0@53!~!|news|business|stocks|buy-arvind-target-of-rs-43-sharekhan-5502951.html!~!|controller|infinite_scroll_article.php
Moneycontrol
Financial Freedom Offer: Subscribe to Moneycontrol Pro and grab benefits worth ₹15,000/-
Last Updated : Jul 03, 2020 01:32 PM IST | Source: Moneycontrol.com

Buy Arvind target of Rs 43: Sharekhan

Sharekhan is bullish on Arvind has recommended buy rating on the stock with a target price of Rs 43 in its research report dated July 01, 2020.

Broker Research
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Sharekhan's research report on Arvind


Q4FY2020 revenue fell by 11.7% y-o-y due to COVID-19 disruptions; revenue grew by 6.7% for January-February and OPM declined by just 27 bps to 9.6% in Q4FY2020 due to lower operating leverage (despite a significant fall in gross margins). Efficient working capital management helped Arvind reduce net debt by Rs. 248 crore in FY2020; we expect balance sheet to remain stable in FY2021 though operating performance is likely to be sluggish during H1FY2021. FY2021 to be impacted by COVID-19, faster recovery in export markets, good growth in garment volumes and sustained growth in AMD business will help company post good recovery in FY2022; soft cotton prices to help margins sustain.



Outlook


We maintain our Buy rating with a revised PT of Rs. 43 due to discounted valuation of 6.6x its FY2022E earnings and 4.1x its FY2022E EV/EBITDA (trading at a discount of ~28% since its listing last year).





For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

First Published on Jul 3, 2020 01:32 pm
Sections