Company Background :
Arvind Limited is a textile company. The Company's principal products/services are finished fabrics and garments. Its segments are Textiles; Brands and Retail; Real Estate, and Others. The Textiles segment includes fabric, yarn and garments. The Brands and Retail segment includes retailing of branded garments, apparels and fabrics. The Real Estate segment includes real estate development.
The Others segment includes electronics, technical textile, construction, e-commerce and project activity. It also manufactures cotton shirting, denim, knits and bottom weights (Khakis) fabrics, and jeans and shirts garments. The Company, through its subsidiary, Arvind Lifestyle Brands Limited, markets branded apparel and licenses international brands in India. Its brands portfolio includes international brands, such as Arrow, US Polo, Izod, Elle and Cherokee. It also operates MEGAMART apparel value retail stores. It also has presence in telecom business directly and through joint venture companies.
Products / Market share
We are a fashion powerhouse that is also building new age homes;
We are a global leader in apparel manufacturing that is also transforming water management;
A denim pioneer that is a trailblazer in advanced materials;
A wearable technology manufacturer that is also delivering state-of-the-art engineering solutions.
That’s where a US$ 1.5 billion dollar conglomerate stands today.
Where we aren’t just driven by bottom lines and profits, but able and willing to drive social impact;
Where our CSR and sustainability initiatives are slowly but surely changing lives and making a difference to thousands. From being just a textile company, it has come a long way and are striving every day to create opportunities where none exist.
Today, the fabric made by Arvind can go around the earth 6 times over. 2 pieces of apparel are sold by an Arvind managed brand, every second in India. Arvind owns 22 global patents for environmental solutions, and is the largest fire protection fabric producer in the country; Also managing 15 global apparel brands of the likes of Tommy Hilfiger, US Polo, CK, GAP, Nautica, and Sephora.
Company has 42,000 employees across verticals ranging from retail to advanced materials, environmental and social solutions to real estate, apparel to agriculture, believe that at Arvind, the possibilities are endless. It just depends on how you fashion them. It is this philosophy that has helped us touch people’s lives through innovative and pioneering solutions since 1931. And it is this philosophy that continues to drive us to change tomorrow for the better.
Source : www.arvind.com
Stock Performance:
During the last 1 year the scrip has given following returns
The scrip has touched a low of 355 and a high of 478. The delivery volumes have increased indicating increased interest by investors. Large deals indicates fund buying at lower levels.
1 year - 1%
6 months - 3.63%
3 months - 14.22%
1 month - minus 15.48%
1 week - minus 2%
Recommendation :
Buy and add to your long term portfolio. In the short term 380 will be a good resistance point. The scrip may correct in the short term, and Rs.390 is the support level in case of a correction. Target price of 450 in next 3 months and 500 for 18 months holding in view of the quarter on quarter improvement in financials
Investment Rationale :
Largest manufacturer of denim fabric India. Robust income and margins ever growing consumer base.
Raghav
Equty Research Analyst
Smart Investor
Equity Research
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