Arvind (NSEI:ARVIND) - Share price, News & Analysis

ARVIND fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	3/6
Past Performance	2/6
Financial Health	4/6
Dividends	0/6

ARVIND Stock Overview

Arvind Limited, together with its subsidiaries, manufactures, markets, retails, supplies, and exports textiles in India and internationally.

Rewards

Trading at 69.1% below our estimate of its fair value

Earnings are forecast to grow 41.39% per year

Became profitable this year

Risk Analysis

Interest payments are not well covered by earnings

Significant insider selling over the past 3 months

Arvind Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Arvind
Historical stock prices
Current Share Price	₹89.45
52 Week High	₹158.75
52 Week Low	₹77.70
Beta	0.73
1 Month Change	-9.42%
3 Month Change	-22.52%
1 Year Change	13.30%
3 Year Change	41.31%
5 Year Change	-75.14%
Change since IPO	-24.64%

Recent News & Updates

Jun 17

We Think Arvind (NSE:ARVIND) Is Taking Some Risk With Its Debt

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Shareholder Returns

	ARVIND	IN Luxury	IN Market
7D	3.8%	2.7%	2.3%
1Y	13.3%	14.2%	-0.9%

Return vs Industry: ARVIND matched the Indian Luxury industry which returned 14.2% over the past year.

Return vs Market: ARVIND exceeded the Indian Market which returned -0.9% over the past year.

Price Volatility

Is ARVIND's price volatile compared to industry and market?
ARVIND volatility
ARVIND Average Weekly Movement	6.7%
Luxury Industry Average Movement	7.7%
Market Average Movement	6.9%
10% most volatile stocks in IN Market	9.9%
10% least volatile stocks in IN Market	4.5%

Stable Share Price: ARVIND is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: ARVIND's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1931	24,774	Sanjaybhai Lalbhai	https://www.arvind.com

Arvind Limited, together with its subsidiaries, manufactures, markets, retails, supplies, and exports textiles in India and internationally. It operates through Textiles, Advanced Material, and Others segments. The company offers denim fabrics, shirting fabrics, woven and knitted fabrics, and voiles and garments products.

Arvind Fundamentals Summary

How do Arvind's earnings and revenue compare to its market cap?
ARVIND fundamental statistics
Market Cap	₹23.34b
Earnings (TTM)	₹2.38b
Revenue (TTM)	₹80.34b

9.8x

P/E Ratio

0.3x

P/S Ratio

Is ARVIND overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ARVIND income statement (TTM)
Revenue	₹80.34b
Cost of Revenue	₹43.31b
Gross Profit	₹37.03b
Other Expenses	₹34.65b
Earnings	₹2.38b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	9.13
Gross Margin	46.10%
Net Profit Margin	2.96%
Debt/Equity Ratio	58.5%

How did ARVIND perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is ARVIND undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ARVIND?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for ARVIND. This is calculated by dividing ARVIND's market cap by their current preferred multiple.
What is ARVIND's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹23.34b

ARVIND key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.5x
Enterprise Value/EBITDA	5.3x
PEG Ratio	0.2x

Price to Earnings Ratio vs Peers

How does ARVIND's PE Ratio compare to its peers?

ARVIND PE Ratio vs Peers

The above table shows the PE ratio for ARVIND vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	11.1x

Forward PE

Price-To-Earnings vs Peers: ARVIND is good value based on its Price-To-Earnings Ratio (9.8x) compared to the peer average (11.1x).

Price to Earnings Ratio vs Industry

How does ARVIND's PE Ratio compare vs other companies in the Indian Luxury Industry?

Price-To-Earnings vs Industry: ARVIND is good value based on its Price-To-Earnings Ratio (9.8x) compared to the Indian Luxury industry average (12.2x)

Price to Earnings Ratio vs Fair Ratio

What is ARVIND's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ARVIND PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	9.8x
Fair PE Ratio	38.1x

Price-To-Earnings vs Fair Ratio: ARVIND is good value based on its Price-To-Earnings Ratio (9.8x) compared to the estimated Fair Price-To-Earnings Ratio (38.1x).

Share Price vs Fair Value

What is the Fair Price of ARVIND when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ARVIND (₹89.45) is trading below our estimate of fair value (₹289.41)

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

Price to Earnings Growth Ratio

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

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Future Growth

How is Arvind forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

41.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARVIND's forecast earnings growth (41.4% per year) is above the savings rate (6.7%).

Earnings vs Market: ARVIND's earnings (41.4% per year) are forecast to grow faster than the Indian market (17.4% per year).

High Growth Earnings: ARVIND's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ARVIND's revenue (9.9% per year) is forecast to grow slower than the Indian market (11.5% per year).

High Growth Revenue: ARVIND's revenue (9.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: ARVIND's Return on Equity is forecast to be low in 3 years time (15.5%).

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Past Performance

How has Arvind performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-28.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ARVIND has high quality earnings.

Growing Profit Margin: ARVIND became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: ARVIND's earnings have declined by 28.7% per year over the past 5 years.

Accelerating Growth: ARVIND has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ARVIND has become profitable in the last year, making it difficult to compare its past year earnings growth to the Luxury industry (83.8%).

Return on Equity

High ROE: ARVIND's Return on Equity (8%) is considered low.

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Financial Health

How is Arvind's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: ARVIND's short term assets (₹40.4B) exceed its short term liabilities (₹36.4B).

Long Term Liabilities: ARVIND's short term assets (₹40.4B) exceed its long term liabilities (₹10.6B).

Debt to Equity History and Analysis

Debt Level: ARVIND's net debt to equity ratio (56%) is considered high.

Reducing Debt: ARVIND's debt to equity ratio has reduced from 78.9% to 58.5% over the past 5 years.

Debt Coverage: ARVIND's debt is well covered by operating cash flow (33.8%).

Interest Coverage: ARVIND's interest payments on its debt are not well covered by EBIT (2.9x coverage).

Balance Sheet

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

5.03%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate ARVIND's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ARVIND's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ARVIND's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ARVIND's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: ARVIND is not paying a notable dividend for the Indian market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as ARVIND has not reported any payouts.

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Management

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

0.5yrs

Average management tenure

CEO

Sanjaybhai Lalbhai (67 yo)

no data

Tenure

₹14,745,548

Compensation

Mr. Sanjaybhai Shrenikbhai Lalbhai served 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 ($USD188.39K) is about average for companies of similar size in the Indian market ($USD197.28K).

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

Leadership Team

Experienced Management: ARVIND's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.

Board Members

Experienced Board: ARVIND's board of directors are considered experienced (9.9 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: ARVIND insiders have only sold shares in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/06/25 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31