Sharekhan's research report on Arvind
Arvind Limited (Arvind) registered yet another quarter of strong performance in Q4FY2022, with revenue growing by 33% to Rs. 2,203.5 crore and PAT increasing by 47% to Rs. 94 crore. Management has guided for 8-10% revenue growth in FY2023 with H1 performance expected to be subdued due to global uncertainties and higher inflation. Garment and AMD businesses to grow by 18-20%. Margins to remain under pressure due to higher cotton prices. Management is upbeat about medium-term outlook with large opportunities in the export market. Management is focusing on expanding capacities through de-bottlenecking mechanism. Debt reduced by Rs. 258 crore in FY2022 and is expected to further reduce going ahead.
Outlook
The stock trades at 8.8x/6.4x its FY2023E/FY2024E EPS. We maintain Buy with a revised PT of Rs. 145.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Read More