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Apparel stocks run up in last one year, likely to see further upside

Arvind Fashions share price surged about 125 in a year, followed by V-Mart Retail, and Aditya Birla Fashion which gained over 75 each

October 01, 2021 / 01:30 PM IST
Apparel stocks have seen good run in the last one year, most of these stocks have surged over 50 percent during this period. These apparel companies are likely to benefit further with easing of restrictions, healthy pace of vaccination, increased mobility with opening up of offices, malls and multiplexes, upcoming festive and wedding season, pent-up demand etc. Arvind Fashions share price surged about 125 in a year, followed by V-Mart Retail Ltd, and Aditya Birla Fashion which gained over 75 each. (Data Source: ACE Equity)
Apparel stocks have seen a good run in the last one year with most of them surging over 50 percent. With easing of restrictions, healthy pace of vaccination, increased mobility at offices, malls and multiplexes, the upcoming festive and wedding season, experts are positive on the sector going ahead. Arvind Fashions share price surged about 125 in a year, followed by V-Mart Retail, and Aditya Birla Fashion which gained over 75 each. (Data Source: ACE Equity)
The research firm ICICI Securities believes earnings of apparel brands and retail companies under their coverage may surprise positively from Q3FY22E as the likely demand recovery may result in better than expected margin performance. Some of the costs savings achieved during pandemic may sustain and coupled with high operating leverage may lead to higher than pre-covid margins from Q3FY22E.  Stocks like Trent, V-Mart and Aditya Birla Fashion and Retail are the preferred picks backed by their strong and consistent track record of execution.
The research firm ICICI Securities believes earnings of apparel brands and retail companies under their coverage may surprise positively from Q3FY22E as the likely demand recovery may result in better than expected margin performance. Some of the costs savings achieved during pandemic may sustain and coupled with high operating leverage may lead to higher than pre-covid margins from Q3FY22E.  Stocks like Trent, V-Mart and Aditya Birla Fashion and Retail are the preferred picks backed by their strong and consistent track record of execution.
Arvind Fashions Ltd. | In the last 1-year, the stock has risen 125 percent to Rs  274 on September 29, 2021 from Rs 122. It was trading 7 percent below its 52-week high of Rs 294.65. ICICI Securities has rated "ADD" rating on the stock with a target price of Rs 310.
Arvind Fashions | In last 1 year, the stock has risen 125 percent to Rs 274 on September 29 from Rs 122. It was trading 7 percent below its 52-week high of Rs 294.65 which it touched on August 26, 2021. ICICI Securities has assigned an "ADD" rating to the stock with a target price of Rs 310.
V-Mart Retail Ltd. | In the last 1-year, the stock has risen 77 percent to Rs 3520 on September 29, 2021 from Rs 1994. It was trading 16 percent below its 52-week high of Rs 4075.80. ICICI Securities has rated "BUY" rating on the stock with a target price of Rs 4,170.
V-Mart Retail Ltd. | In the last 1-year, the stock has risen 77 percent to Rs 3520 on September 29, 2021 from Rs 1994. It was trading 16 percent below its 52-week high of Rs 4075.80 which it touched on July 30, 2021. ICICI Securities has rated a "BUY" rating to the stock with a target price of Rs 4,170.
Aditya Birla Fashion and Retail Ltd. | In the last 1-year, the stock has risen 75 percent to Rs 232 on September 29, 2021 from Rs 133. It was trading 1 percent below its 52-week high of Rs 234.35. ICICI Securities has rated "BUY" rating on the stock with a target price of Rs 270.
Aditya Birla Fashion and Retail Ltd. | In the last 1-year, the stock has risen 75 percent to Rs 232 on September 29, 2021 from Rs 133. It was trading 1 percent below its 52-week high of Rs 234.35 which it touched on July 30, 2021. ICICI Securities has rated a "BUY" rating to the stock with a target price of Rs 270.
TCNS Clothing Co. Ltd. | In the last 1-year, the stock has risen 70 percent to Rs 653 on September 29, 2021 from Rs 383. It was trading 8 percent below its 52-week high of Rs 704.90. ICICI Securities has rated "ADD" rating on the stock with a target price of Rs 725.
TCNS Clothing Co. Ltd. | In the last 1-year, the stock has risen 70 percent to Rs 653 on September 29, 2021 from Rs 383. It was trading 8 percent below its 52-week high of Rs 704.90 which it touched on September 06, 2021. ICICI Securities has assigned an "ADD" rating to the stock with a target price of Rs 725.
Shoppers Stop Ltd. | In the last 1-year, the stock has risen 60 percent to Rs 263 on September 29, 2021 from Rs 164. It was trading 10 percent below its 52-week high of Rs 290.50. ICICI Securities has rated "ADD" rating on the stock with a target price of Rs 290.
Shoppers Stop Ltd. | In the last 1-year, the stock has risen 60 percent to Rs 263 on September 29, 2021 from Rs 164. It was trading 10 percent below its 52-week high of Rs 290.50 which it touched on July 29, 2021. ICICI Securities has assigned an "ADD" rating to the stock with a target price of Rs 290.
Trent Ltd. | In the last 1-year, the stock has risen 50 percent to Rs 1009 on September 29, 2021 from Rs 674. It was trading 4 percent below its 52-week high of Rs 1050.00. ICICI Securities has rated "BUY" rating on the stock with a target price of Rs 1,160.
Trent Ltd. | In the last 1-year, the stock has risen 50 percent to Rs 1009 on September 29, 2021 from Rs 674. It was trading 4 percent below its 52-week high of Rs 1050.00 which it touched on September 08, 2021. ICICI Securities has rated a "BUY" rating to the stock with a target price of Rs 1,160.
Kewal Kiran Clothing Ltd. | In the last 1-year, the stock has risen 22 percent to Rs 907 on September 29, 2021 from Rs 745. It was trading 14 percent below its 52-week high of Rs 1036.00. ICICI Securities has rated "ADD" rating on the stock with a target price of Rs 1,000.
Kewal Kiran Clothing Ltd. | In the last 1-year, the stock has risen 22 percent to Rs 907 on September 29, 2021 from Rs 745. It was trading 14 percent below its 52-week high of Rs 1036.00. which it touched on January 05, 2021 ICICI Securities has assigned an "ADD" rating to the stock with a target price of Rs 1,000.
Ritesh Presswala Research Analyst at Moneycontrol
first published: Oct 1, 2021 01:30 pm

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