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Last Updated on: 23 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 500101 | NSE: ARVIND

Arvind Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 11:36 pm

Market Cap 9,524 Cr.
Current Price 364
High / Low421/213
Stock P/E32.9
Book Value 134
Dividend Yield1.03 %
ROCE13.1 %
ROE9.73 %
Face Value 10.0
PEG Ratio0.48

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Arvind Ltd

Competitors of Arvind Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Vinny Overseas Ltd 81.0 Cr. 1.756.21/1.6039.9 1.670.00 %13.3 %12.1 % 1.00
Nandan Denim Ltd 694 Cr. 4.917.35/2.6013.5 4.170.00 %11.5 %7.71 % 1.00
Mittal Life Style Ltd 91.9 Cr. 2.077.40/1.7156.4 0.760.00 %2.23 %0.78 % 1.00
Arvind Ltd 9,524 Cr. 364421/21332.9 1341.03 %13.1 %9.73 % 10.0
Aarvee Denims & Exports Ltd 164 Cr. 69.769.8/21.69.20 20.50.00 %10.0 %117 % 10.0
Industry Average3,460.67 Cr88.4930.3832.220.21%10.03%29.46%4.60

All Competitor Stocks of Arvind Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales1,4352,1082,2702,1972,3522,1701,9801,8811,8531,9221,8882,0751,831
Expenses1,3301,8912,0291,9592,1321,9681,7931,6901,6731,7161,6731,8321,681
Operating Profit105217241238220202186191180206216243150
OPM %7%10%11%11%9%9%9%10%10%11%11%12%8%
Other Income7139-71522226131310813
Interest47484140404243383739394540
Depreciation63646562626263666567666768
Profit before tax11191451281191501021139211312013854
Tax %1,120%40%35%33%15%15%15%14%24%26%21%24%19%
Net Profit-11719486102127879770849410444
EPS in Rs-0.322.693.563.183.774.793.223.712.523.063.513.791.50

Last Updated: September 11, 2024, 3:37 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: September 11, 2024, 3:37 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales5,2936,8627,8518,0119,2216,7947,1427,3695,0738,0108,3827,7387,715
Expenses4,6055,9276,8167,0378,2616,1036,4196,6614,5957,1807,5546,8586,901
Operating Profit6879351,036974960691723708478830828879814
OPM %13%14%13%12%10%10%10%10%9%10%10%11%11%
Other Income815239896610939515131004244
Interest315354417383312192236255239197192193163
Depreciation204225212239294222235290285254253266269
Profit before tax248407445441420385290168-31393484463426
Tax %0%13%24%28%24%18%21%45%-11%38%15%24%
Net Profit24835333831632131622892-27242413353327
EPS in Rs9.6313.7113.2112.1712.1811.978.753.70-0.649.1415.4712.8711.86
Dividend Payout %17%17%19%20%20%20%23%0%0%0%37%37%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)42.34%-4.25%-6.51%1.58%-1.56%-27.85%-59.65%-129.35%996.30%70.66%-14.53%
Change in YoY Net Profit Growth (%)0.00%-46.59%-2.26%8.09%-3.14%-26.29%-31.80%-69.70%1125.64%-925.64%-85.19%

Arvind Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:1%
5 Years:2%
3 Years:15%
TTM:5%
Compounded Profit Growth
10 Years:-1%
5 Years:6%
3 Years:284%
TTM:-6%
Stock Price CAGR
10 Years:14%
5 Years:50%
3 Years:42%
1 Year:65%
Return on Equity
10 Years:9%
5 Years:7%
3 Years:10%
Last Year:10%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:41 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital258258258258258259259259259261262262262
Reserves1,9962,3252,4662,3883,3093,5242,4922,4502,4602,6903,0843,2813,249
Borrowings2,4612,9923,3973,8192,9263,3232,7002,6402,1211,8651,5171,4481,560
Other Liabilities1,5191,7881,8551,6592,0323,0821,8721,7901,8722,8812,0352,2542,392
Total Liabilities6,2337,3637,9768,1258,52510,1887,3227,1386,7137,6976,8987,2457,463
Fixed Assets2,6942,8933,2083,3573,6723,9623,4213,8353,5903,4813,4273,4213,460
CWIP20813510014796116262113784680117282
Investments68129595442777678907066211167162
Other Assets3,2634,2074,6094,0774,4816,0333,5613,1002,9744,1043,1803,5393,559
Total Assets6,2337,3637,9768,1258,52510,1887,3227,1386,7137,6976,8987,2457,463

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +4903885586505514282,358860776595666696
Cash from Investing Activity +-331-573-587-50366-353-1,306-306-81-121-135-277
Cash from Financing Activity +-39147-48-151-621-55-1,019-575-717-439-534-419
Net Cash Flow121-38-77-3-42033-20-2234-31

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow685.00933.00-2.00971.00958.00688.00721.00706.00476.00829.00827.00878.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days525454353195465279514250
Inventory Days232190193202207258179125168196135197
Days Payable180146141128124247152123203193101136
Cash Conversion Cycle104981061091141067354445376111
Working Capital Days7185888184141774976615465
ROCE %12%15%15%13%11%8%9%9%5%13%13%13%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters42.59%41.31%41.30%41.26%41.26%41.26%41.16%41.16%41.14%41.14%41.13%39.61%
FIIs12.00%12.29%11.73%11.42%12.05%11.14%9.63%10.74%10.56%12.63%15.15%17.54%
DIIs8.71%11.04%12.06%11.14%9.85%9.07%8.58%11.41%13.10%14.23%14.80%16.31%
Public36.70%35.37%34.90%36.18%36.84%38.53%40.63%36.70%35.20%31.97%28.92%26.55%
No. of Shareholders2,04,2652,02,1502,03,3102,08,6922,12,9312,18,2162,15,7861,96,8262,05,4582,03,5921,99,2801,88,382

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Quant Small Cap Fund14,133,9852.17533.42752,3922024-11-211778.54%
Bandhan Small Cap Fund2,990,6681.7112.87752,3922024-11-21297.49%
SBI Magnum Comma Fund760,0004.3428.68752,3922024-11-211.01%
ITI Small Cap Fund752,3921.2328.4752,3922024-11-210%
JM Value Fund385,6051.4814.55752,3922024-11-21-48.75%
HSBC Mid Cap Fund - OLD1,200,0001.0311.14752,3922024-11-2159.49%
ITI ELSS Tax Saver Fund273,4672.6710.32752,3922024-11-21-63.65%
LIC MF Small Cap Fund146,5541.745.53752,3922024-11-21-80.52%
HSBC Small Cap Equity Fund - OLD530,7621.644.93752,3922024-11-21-29.46%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)12.8715.519.17-0.643.70
Diluted EPS (Rs.)12.8615.499.13-0.643.70
Cash EPS (Rs.)23.6425.4319.679.9414.87
Book Value[Excl.RevalReserv]/Share (Rs.)138.39130.18115.36106.85106.91
Book Value[Incl.RevalReserv]/Share (Rs.)138.39130.18115.36106.85106.91
Revenue From Operations / Share (Rs.)295.75320.55308.29195.93284.77
PBDIT / Share (Rs.)33.8732.3032.1919.8628.89
PBIT / Share (Rs.)23.7022.6221.758.8517.67
PBT / Share (Rs.)17.7118.5914.46-1.216.57
Net Profit / Share (Rs.)13.4815.759.23-1.073.65
NP After MI And SOA / Share (Rs.)12.8715.479.14-0.633.70
PBDIT Margin (%)11.4510.0710.4410.1310.14
PBIT Margin (%)8.017.057.054.516.20
PBT Margin (%)5.985.794.68-0.612.30
Net Profit Margin (%)4.554.912.99-0.541.28
NP After MI And SOA Margin (%)4.354.822.96-0.321.29
Return on Networth / Equity (%)9.5012.098.07-0.603.53
Return on Capital Employeed (%)14.9014.5213.935.5511.17
Return On Assets (%)4.635.853.09-0.241.33
Long Term Debt / Equity (X)0.070.110.250.450.43
Total Debt / Equity (X)0.370.410.590.690.87
Asset Turnover Ratio (%)1.091.101.060.650.94
Current Ratio (X)1.121.101.111.120.98
Quick Ratio (X)0.470.510.500.670.57
Inventory Turnover Ratio (X)1.912.132.651.722.40
Dividend Payout Ratio (NP) (%)44.660.000.000.0054.10
Dividend Payout Ratio (CP) (%)24.950.000.000.0013.40
Earning Retention Ratio (%)55.340.000.000.0045.90
Cash Earning Retention Ratio (%)75.050.000.000.0086.60
Interest Coverage Ratio (X)5.565.144.752.293.16
Interest Coverage Ratio (Post Tax) (X)3.203.172.441.041.61
Enterprise Value (Cr.)8395.453617.344747.913588.692863.11
EV / Net Operating Revenue (X)1.080.430.590.700.38
EV / EBITDA (X)9.484.285.666.983.83
MarketCap / Net Operating Revenue (X)0.910.260.370.330.06
Retention Ratios (%)55.330.000.000.0045.89
Price / BV (X)2.000.661.020.620.18
Price / Net Operating Revenue (X)0.910.260.370.330.06
EarningsYield0.040.180.07-0.010.18

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Arvind Ltd as of November 23, 2024 is: 433.38

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 23, 2024, Arvind Ltd is Undervalued by 19.06% compared to the current share price 364.00

Intrinsic Value of Arvind Ltd as of November 23, 2024 is: 729.35

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 23, 2024, Arvind Ltd is Undervalued by 100.37% compared to the current share price 364.00

Last 5 Year EPS CAGR: 68.29%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (2,747.23 cr) compared to borrowings (2,520.69 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (6.92 cr) and profit (349.15 cr) over the years.
  1. The stock has a low average ROCE of 11.33%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 77.67, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 87.33, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Arvind Ltd:
    1. Net Profit Margin: 4.55%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 14.9% (Industry Average ROCE: 10.03%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 9.5% (Industry Average ROE: 29.46%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 3.2
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.47
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 32.9 (Industry average Stock P/E: 30.38)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.37
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Arvind Ltd. is a Public Limited Listed company incorporated on 01/06/1931 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L17119GJ1931PLC000093 and registration number is 000093. Currently Company is involved in the business activities of Finishing of cotton and blended cotton textiles.. Company’s Total Operating Revenue is Rs. 7459.57 Cr. and Equity Capital is Rs. 260.59 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Textiles - DenimNaroda Road, Ahmedabad Gujarat 380025investor@arvind.in
http://www.arvind.com
Management
NamePosition Held
Mr. Sanjay S LalbhaiChairman & Managing Director
Mr. Punit S LalbhaiVice Chairman & Exe.Director
Mr. Kulin S LalbhaiExecutive Director
Mr. Jayesh ShahExecutive Director & Group CFO
Mr. Arpit K PatelIndependent Director
Mr. Ismet Tehmesp KhambattaIndependent Director
Mr. Nilesh ShahIndependent Director
Mr. Dileep C ChoksiIndependent Director
Dr. Bakul DholakiaIndependent Director

FAQ

What is the latest intrinsic value of Arvind Ltd?

The latest intrinsic value of Arvind Ltd as on 23 November 2024 is ₹433.38, which is 19.06% higher than the current market price of ₹364.00.

What is the Market Cap of Arvind Ltd?

The Market Cap of Arvind Ltd is 9,524 Cr..

What is the current Stock Price of Arvind Ltd as on 23 November 2024?

The current stock price of Arvind Ltd as on 23 November 2024 is 364.

What is the High / Low of Arvind Ltd stocks in FY 2024?

In FY 2024, the High / Low of Arvind Ltd stocks is 421/213.

What is the Stock P/E of Arvind Ltd?

The Stock P/E of Arvind Ltd is 32.9.

What is the Book Value of Arvind Ltd?

The Book Value of Arvind Ltd is 134.

What is the Dividend Yield of Arvind Ltd?

The Dividend Yield of Arvind Ltd is 1.03 %.

What is the ROCE of Arvind Ltd?

The ROCE of Arvind Ltd is 13.1 %.

What is the ROE of Arvind Ltd?

The ROE of Arvind Ltd is 9.73 %.

What is the Face Value of Arvind Ltd?

The Face Value of Arvind Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Arvind Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE