Buy Arvind; target of Rs 480: Cholamandalam Securities

Cholamandalam Securities' research report on Arvind

Revenue up 10.3% YoY (-7.6% QoQ) at INR 28.6bn, in line with our estimate of INR 28.4bn. Textile revenue which accounts for 54.6% of the cons. revenue grew by 2% to INR 15.6bn. Brand and Retail business which accounts for 35.5% of the cons. revenue grew 14% YoY to INR 10.16bn. Engineering grew 54.3% YoY to INR 370mn. Advance material revenue grew 10.2% YoY to INR 1.28bn.

Outlook

At CMP the stock is quoting at EV/EBITDA of 11.6XFY19E and 9.4XFY20E respectively. We rate Arvind as a BUY with a target price of INR 480 per share based on FY20E estimates, indicating an upside of 21.2%.