BSE:500101

Stock Analysis Report

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Executive Summary

Arvind Limited, together with its subsidiaries, manufactures, supplies, and exports textiles worldwide.


Snowflake Analysis

Very undervalued average dividend payer.


Similar Companies

Share Price & News

How has Arvind's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 500101's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.4%

500101

2.7%

IN Luxury

1.8%

IN Market


1 Year Return

-70.7%

500101

-28.8%

IN Luxury

-23.7%

IN Market

Return vs Industry: 500101 underperformed the Indian Luxury industry which returned -28.7% over the past year.

Return vs Market: 500101 underperformed the Indian Market which returned -23.2% over the past year.


Shareholder returns

500101IndustryMarket
7 Day0.4%2.7%1.8%
30 Day-4.2%-2.9%-0.5%
90 Day-40.5%-32.2%-22.2%
1 Year-69.7%-70.7%-28.2%-28.8%-22.2%-23.7%
3 Year-93.6%-93.9%-6.2%-8.4%-12.1%-16.8%
5 Year-90.0%-90.6%23.3%20.7%4.5%-5.7%

Price Volatility Vs. Market

How volatile is Arvind's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Arvind undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 500101 (₹23) is trading below our estimate of fair value (₹63.62)

Significantly Below Fair Value: 500101 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 500101 is good value based on its PE Ratio (3.5x) compared to the Luxury industry average (8.1x).

PE vs Market: 500101 is good value based on its PE Ratio (3.5x) compared to the Indian market (9.9x).


Price to Earnings Growth Ratio

PEG Ratio: 500101 is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: 500101 is good value based on its PB Ratio (0.2x) compared to the IN Luxury industry average (0.4x).


Next Steps

Future Growth

How is Arvind forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

19.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500101's forecast earnings growth (19.1% per year) is above the savings rate (7.2%).

Earnings vs Market: 500101's earnings (19.1% per year) are forecast to grow faster than the Indian market (16.8% per year).

High Growth Earnings: 500101's earnings are forecast to grow, but not significantly.

Revenue vs Market: 500101's revenue is expected to decline over the next 3 years (-1.3% per year).

High Growth Revenue: 500101's revenue is forecast to decline over the next 3 years (-1.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 500101's Return on Equity is forecast to be low in 3 years time (3%).


Next Steps

Past Performance

How has Arvind performed over the past 5 years?

-10.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500101 has high quality earnings.

Growing Profit Margin: 500101's current net profit margins (2.3%) are lower than last year (2.6%).


Past Earnings Growth Analysis

Earnings Trend: 500101's earnings have declined by -10.9% per year over the past 5 years.

Accelerating Growth: 500101's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 500101 had negative earnings growth (-40.1%) over the past year, making it difficult to compare to the Luxury industry average (6.2%).


Return on Equity

High ROE: 500101's Return on Equity (6.3%) is considered low.


Next Steps

Financial Health

How is Arvind's financial position?


Financial Position Analysis

Short Term Liabilities: 500101's short term assets (₹30.9B) do not cover its short term liabilities (₹32.9B).

Long Term Liabilities: 500101's short term assets (₹30.9B) exceed its long term liabilities (₹12.0B).


Debt to Equity History and Analysis

Debt Level: 500101's debt to equity ratio (86.4%) is considered high.

Reducing Debt: 500101's debt to equity ratio has reduced from 118.9% to 86.4% over the past 5 years.

Debt Coverage: 500101's debt is well covered by operating cash flow (101.5%).

Interest Coverage: 500101's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Arvind's current dividend yield, its reliability and sustainability?

8.70%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 500101's dividend (8.7%) is higher than the bottom 25% of dividend payers in the Indian market (0.86%).

High Dividend: 500101's dividend (8.7%) is in the top 25% of dividend payers in the Indian market (3.7%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 500101 has been paying a dividend for less than 10 years.

Growing Dividend: 500101's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.1%), 500101's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 500101's dividends in 3 years are forecast to be well covered by earnings (29.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.8yrs

Average board tenure


CEO

Sanjaybhai Lalbhai (65yo)

no data

Tenure

₹62,560,573

Compensation

Mr. Sanjaybhai Shrenikbhai Lalbhai serves as Non Executive Chairman of The Anup Engineering Limited. Mr. Lalbhai has been an Executive Chairman of Arvind Limited since September 28, 2007 and serves as its  ...


CEO Compensation Analysis

Compensation vs Market: Sanjaybhai's total compensation ($USD823.19K) is above average for companies of similar size in the Indian market ($USD50.03K).

Compensation vs Earnings: Sanjaybhai's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Sanjaybhai Lalbhai
Chairman & MDno data₹62.56m0.00060% 35.7k
Jayesh Shah
CFO & Whole Time Director17.5yrs₹41.50m0.26% 15.3m
Punit Lalbhai
Executive Director7.83yrs₹32.48m0.0014% 85.7k
Kulin Lalbhai
Executive Director7.83yrs₹32.83mno data
Renuka Ramnath
Independent Director9.58yrs₹680.00k0.00011% 6.5k
Bakul Dholakia
Independent Director3.83yrs₹820.00k0.0078% 464.8k
Nilesh Shah
Independent Director5yrs₹820.00k0.000080% 4.8k
Dileep Choksi
Independent Director6yrs₹840.00kno data
Arpit Patel
Independent Director1yrno datano data

7.8yrs

Average Tenure

59yo

Average Age

Experienced Board: 500101's board of directors are considered experienced (7.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Arvind Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Arvind Limited
  • Ticker: 500101
  • Exchange: BSE
  • Founded: 1931
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹5.952b
  • Shares outstanding: 258.77m
  • Website: https://arvind.com

Location

  • Arvind Limited
  • Naroda Road
  • Ahmedabad
  • Gujarat
  • 380025
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500101BSE (Mumbai Stock Exchange)YesEquity SharesININRJun 1998
ARVINDNSEI (National Stock Exchange of India)YesEquity SharesININRJun 1998

Biography

Arvind Limited, together with its subsidiaries, manufactures, supplies, and exports textiles worldwide. The company operates through Textiles, Advanced Material, and Others segments. It offers denim fabrics, shirting fabrics, woven and knitted fabrics, and voiles and garments products. The company also provides a range of specialized clothing and accessories for factory workers, fire-fighters, construction crews, soldiers, and healthcare and security personnel; hot-gas and liquid filtration products; interiors and seating solutions; and composites and coated fabrics. In addition, it supplies water and waste water treatment plants for industrial process, and waste water and zero liquid discharge solutions. Further, the company is involved in the e-commerce, technical textiles, agriculture produce, telecommunication, and other businesses, as well as offers EPABX and one to many radio solutions. Arvind Limited was founded in 1931 and is headquartered in Ahmedabad, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/25 12:47
End of Day Share Price2020/05/22 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.