Hold Arvind; target of Rs 66: Sharekhan

Sharekhan's research report on Arvind

Arvind Limited’s (Arvind) revenue grew by ~5% y-o-y to Rs. 1,897 crore; Textile business grew by 4%, while advanced material business revenue grew by 31%. OPM declined by 298 BPS to 8.1% due to sub-scale operations in new garment plants. H1FY2020 margins will be lower on a y-o-y basis; however, they are expected to improve in H2FY2020 as new operation facilities will run with optimal utilisation.

Outlook

Reduced our earnings estimates to factor in subdued performance; Maintain Hold with a revised PT of Rs. 66.