Hold Arvind; target of Rs 95: Sharekhan

Sharekhan's research report on Arvind

For Q4FY2019, Arvind Limited’s revenue remained flat, mainly led by pressure on denim volumes; margins improved by 34 BPS y-o-y led by growth in advanced materials business. Denim sales volume will remain under pressure in the next 6-9 months; garmenting business to perform strongly in H2FY2019 as capacity increases. Revenue and PAT is expected to clock a CAGR of 8% each over FY2019-21.

Outlook

We maintain our Hold recommendation with an unchanged PT of Rs. 95.