Arvind Fashions - FY24 Annual Report Analysis; Maintaining A Buy: Anand Rathi

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Anand Rathi Report.Its FY24 annual report highlighted Arvind Fashions Ltd.’s steps for growth with premiumisation being a core theme across brands. It is focusing on launching high-quality seasonal collections, which lower discounts and aid full-price sell-throughs. Adjacent categories account for more than 15% revenue of some brands with double-digit growth. It is prioritising expanding its retail footprint with ~150 exclusive brand outlets added annually and broad base the rollout of innovative retail formats (Club A, Stride). Better stock management and higher retail channel mix reduced gross working capital YoY. The return on capital employed rose to ~11% (FY23: 10.6%), driven by efficient working capital management, better stock control and flexible sourcing methods. Revenue/profit after tax of the 50% joint venture PVH Arvind Fashion rose ~22%/36% YoY to Rs 12.4 billion/1.4 billion. We are enthused about the company and expect 12%/22% sales/Ebitda CAGRs over FY24- 26. We expect the RoCE to rise to 20.2% by FY26. To reflect the better operations, we raise our target multiple to 13 times FY26e EV/Ebitda (from 12x). We retain our Buy recommendation, with a Rs 689 target price (earlier Rs 632)..Click on the attachment to read the full report:.Indian Textiles - Better Volumes, Soft Raw Material Prices Drive Profitability; Outlook Positive: Systematix.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Arvind Fashions - FY24 Annual Report Analysis; Maintaining A Buy: Anand Rathi

The brokerage expects the RoCE to rise to 20.2% by FY26.

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP

Arvind Fashions - FY24 Annual Report Analysis; Maintaining A Buy: Anand Rathi

The brokerage expects the RoCE to rise to 20.2% by FY26.

Choose a plan

Follow Us

DOWNLOAD THE APP