Hold Arvind; target of Rs 419: Axis Direct

Axis Direct recommended hold rating on Arvind with a target price of Rs 419 in its research report dated May 17, 2017.

June 09, 2017 / 10:55 IST

26 Aug, 2025 12:21

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Axis Direct's research report onArvind

Arvind’s Brands & Retail division's strong performance in Q4 (22% YoY rev growth; EBITDA margin doubled to 7%) was offset by muted performance by the Textile division (EBITDA margin declined 260 bps).FY17 EBITDA (flat YoY at Rs 9.4 bn) was impacted due to higher investments in online business.

Outlook

Our SoTP-based TP is based on (1) 7x FY19E EBITDA multiple for Textiles and (2) Rs 67 bn for 90% stake in Brands & Retail (based on deal valuation of Rs 74 bn; implies 20x FY19E EBITDA).

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first published: May 22, 2017 04:39 pm

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