Arvind Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 26, 2024, 10:40 pm

Market Cap	10,575 Cr.
Current Price	404
High / Low	450/236
Stock P/E	36.5
Book Value	134
Dividend Yield	0.93 %
ROCE	13.1 %
ROE	9.73 %
Face Value	10.0
PEG Ratio	0.53

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

Stock P/E Current Price Intrinsic Value

View Share Price Target for Arvind Ltd

Competitors of Arvind Ltd

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
Vinny Overseas Ltd	85.7 Cr.	1.86	6.21/1.60	42.2	1.67	0.00 %	13.3 %	12.1 %	1.00
Nandan Denim Ltd	725 Cr.	4.99	7.35/2.60	14.1	4.17	0.00 %	11.5 %	7.71 %	1.00
Mittal Life Style Ltd	108 Cr.	2.44	7.40/1.71	66.4	0.76	0.00 %	2.23 %	0.78 %	1.00
Arvind Ltd	10,575 Cr.	404	450/236	36.5	134	0.93 %	13.1 %	9.73 %	10.0
Aarvee Denims & Exports Ltd	252 Cr.	108	108/21.6	14.2	20.5	0.00 %	10.0 %	117 %	10.0
Industry Average	2,915.00 Cr	104.26		34.68	32.22	0.19%	10.03%	29.46%	4.60

All Competitor Stocks of Arvind Ltd

Quarterly Result

Month	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024
Sales	1,435	2,108	2,270	2,197	2,352	2,170	1,980	1,881	1,853	1,922	1,888	2,075	1,831
Expenses	1,330	1,891	2,029	1,959	2,132	1,968	1,793	1,690	1,673	1,716	1,673	1,832	1,681
Operating Profit	105	217	241	238	220	202	186	191	180	206	216	243	150
OPM %	7%	10%	11%	11%	9%	9%	9%	10%	10%	11%	11%	12%	8%
Other Income	7	13	9	-7	1	52	22	26	13	13	10	8	13
Interest	47	48	41	40	40	42	43	38	37	39	39	45	40
Depreciation	63	64	65	62	62	62	63	66	65	67	66	67	68
Profit before tax	1	119	145	128	119	150	102	113	92	113	120	138	54
Tax %	1,120%	40%	35%	33%	15%	15%	15%	14%	24%	26%	21%	24%	19%
Net Profit	-11	71	94	86	102	127	87	97	70	84	94	104	44
EPS in Rs	-0.32	2.69	3.56	3.18	3.77	4.79	3.22	3.71	2.52	3.06	3.51	3.79	1.50

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

Quarterly Chart

Profit & Loss - Annual Report

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

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	TTM
Sales	5,293	6,862	7,851	8,011	9,221	6,794	7,142	7,369	5,073	8,010	8,382	7,738	7,715
Expenses	4,605	5,927	6,816	7,037	8,261	6,103	6,419	6,661	4,595	7,180	7,554	6,858	6,901
Operating Profit	687	935	1,036	974	960	691	723	708	478	830	828	879	814
OPM %	13%	14%	13%	12%	10%	10%	10%	10%	9%	10%	10%	11%	11%
Other Income	81	52	39	89	66	109	39	5	15	13	100	42	44
Interest	315	354	417	383	312	192	236	255	239	197	192	193	163
Depreciation	204	225	212	239	294	222	235	290	285	254	253	266	269
Profit before tax	248	407	445	441	420	385	290	168	-31	393	484	463	426
Tax %	0%	13%	24%	28%	24%	18%	21%	45%	-11%	38%	15%	24%
Net Profit	248	353	338	316	321	316	228	92	-27	242	413	353	327
EPS in Rs	9.63	13.71	13.21	12.17	12.18	11.97	8.75	3.70	-0.64	9.14	15.47	12.87	11.86
Dividend Payout %	17%	17%	19%	20%	20%	20%	23%	0%	0%	0%	37%	37%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2013-2014	2014-2015	2015-2016	2016-2017	2017-2018	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023	2023-2024
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:	16%
5 Years:	60%
3 Years:	52%
1 Year:	55%

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

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Sep 2024
Equity Capital	258	258	258	258	258	259	259	259	259	261	262	262	262
Reserves	1,996	2,325	2,466	2,388	3,309	3,524	2,492	2,450	2,460	2,690	3,084	3,281	3,249
Borrowings	2,461	2,992	3,397	3,819	2,926	3,323	2,700	2,640	2,121	1,865	1,517	1,448	1,560
Other Liabilities	1,519	1,788	1,855	1,659	2,032	3,082	1,872	1,790	1,872	2,881	2,035	2,254	2,392
Total Liabilities	6,233	7,363	7,976	8,125	8,525	10,188	7,322	7,138	6,713	7,697	6,898	7,245	7,463
Fixed Assets	2,694	2,893	3,208	3,357	3,672	3,962	3,421	3,835	3,590	3,481	3,427	3,421	3,460
CWIP	208	135	100	147	96	116	262	113	78	46	80	117	282
Investments	68	129	59	544	277	76	78	90	70	66	211	167	162
Other Assets	3,263	4,207	4,609	4,077	4,481	6,033	3,561	3,100	2,974	4,104	3,180	3,539	3,559
Total Assets	6,233	7,363	7,976	8,125	8,525	10,188	7,322	7,138	6,713	7,697	6,898	7,245	7,463

Reserves and Borrowings Chart

Cash Flow

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Cash from Operating Activity +	490	388	558	650	551	428	2,358	860	776	595	666	696
Cash from Investing Activity +	-331	-573	-587	-503	66	-353	-1,306	-306	-81	-121	-135	-277
Cash from Financing Activity +	-39	147	-48	-151	-621	-55	-1,019	-575	-717	-439	-534	-419
Net Cash Flow	121	-38	-77	-3	-4	20	33	-20	-22	34	-3	1

Free Cash Flow

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Free Cash Flow	685.00	933.00	-2.00	971.00	958.00	688.00	721.00	706.00	476.00	829.00	827.00	878.00

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

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Debtor Days	52	54	54	35	31	95	46	52	79	51	42	50
Inventory Days	232	190	193	202	207	258	179	125	168	196	135	197
Days Payable	180	146	141	128	124	247	152	123	203	193	101	136
Cash Conversion Cycle	104	98	106	109	114	106	73	54	44	53	76	111
Working Capital Days	71	85	88	81	84	141	77	49	76	61	54	65
ROCE %	12%	15%	15%	13%	11%	8%	9%	9%	5%	13%	13%	13%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024
Promoters	42.59%	41.31%	41.30%	41.26%	41.26%	41.26%	41.16%	41.16%	41.14%	41.14%	41.13%	39.61%
FIIs	12.00%	12.29%	11.73%	11.42%	12.05%	11.14%	9.63%	10.74%	10.56%	12.63%	15.15%	17.54%
DIIs	8.71%	11.04%	12.06%	11.14%	9.85%	9.07%	8.58%	11.41%	13.10%	14.23%	14.80%	16.31%
Public	36.70%	35.37%	34.90%	36.18%	36.84%	38.53%	40.63%	36.70%	35.20%	31.97%	28.92%	26.55%
No. of Shareholders	2,04,265	2,02,150	2,03,310	2,08,692	2,12,931	2,18,216	2,15,786	1,96,826	2,05,458	2,03,592	1,99,280	1,88,382

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund Name	No of Shares	AUM (%)	Amount Invested (Cr)	Previous Number of Shares	Previous Date	Percentage Change
Quant Small Cap Fund	14,133,985	2.17	533.42	760,000	2024-12-25	1759.73%
Bandhan Small Cap Fund	2,990,668	1.7	112.87	760,000	2024-12-25	293.51%
SBI Magnum Comma Fund	760,000	4.34	28.68	760,000	2024-12-25	0%
ITI Small Cap Fund	752,392	1.23	28.4	760,000	2024-12-25	-1%
JM Value Fund	385,605	1.48	14.55	760,000	2024-12-25	-49.26%
HSBC Mid Cap Fund - OLD	1,200,000	1.03	11.14	760,000	2024-12-25	57.89%
ITI ELSS Tax Saver Fund	273,467	2.67	10.32	760,000	2024-12-25	-64.02%
LIC MF Small Cap Fund	146,554	1.74	5.53	760,000	2024-12-25	-80.72%
HSBC Small Cap Equity Fund - OLD	530,762	1.64	4.93	760,000	2024-12-25	-30.16%

ROCE Trend

EPS Trend

Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 21	Mar 20
FaceValue	10.00	10.00	10.00	10.00	10.00
Basic EPS (Rs.)	12.87	15.51	9.17	-0.64	3.70
Diluted EPS (Rs.)	12.86	15.49	9.13	-0.64	3.70
Cash EPS (Rs.)	23.64	25.43	19.67	9.94	14.87
Book Value[Excl.RevalReserv]/Share (Rs.)	138.39	130.18	115.36	106.85	106.91
Book Value[Incl.RevalReserv]/Share (Rs.)	138.39	130.18	115.36	106.85	106.91
Revenue From Operations / Share (Rs.)	295.75	320.55	308.29	195.93	284.77
PBDIT / Share (Rs.)	33.87	32.30	32.19	19.86	28.89
PBIT / Share (Rs.)	23.70	22.62	21.75	8.85	17.67
PBT / Share (Rs.)	17.71	18.59	14.46	-1.21	6.57
Net Profit / Share (Rs.)	13.48	15.75	9.23	-1.07	3.65
NP After MI And SOA / Share (Rs.)	12.87	15.47	9.14	-0.63	3.70
PBDIT Margin (%)	11.45	10.07	10.44	10.13	10.14
PBIT Margin (%)	8.01	7.05	7.05	4.51	6.20
PBT Margin (%)	5.98	5.79	4.68	-0.61	2.30
Net Profit Margin (%)	4.55	4.91	2.99	-0.54	1.28
NP After MI And SOA Margin (%)	4.35	4.82	2.96	-0.32	1.29
Return on Networth / Equity (%)	9.50	12.09	8.07	-0.60	3.53
Return on Capital Employeed (%)	14.90	14.52	13.93	5.55	11.17
Return On Assets (%)	4.63	5.85	3.09	-0.24	1.33
Long Term Debt / Equity (X)	0.07	0.11	0.25	0.45	0.43
Total Debt / Equity (X)	0.37	0.41	0.59	0.69	0.87
Asset Turnover Ratio (%)	1.09	1.10	1.06	0.65	0.94
Current Ratio (X)	1.12	1.10	1.11	1.12	0.98
Quick Ratio (X)	0.47	0.51	0.50	0.67	0.57
Inventory Turnover Ratio (X)	1.91	2.13	2.65	1.72	2.40
Dividend Payout Ratio (NP) (%)	44.66	0.00	0.00	0.00	54.10
Dividend Payout Ratio (CP) (%)	24.95	0.00	0.00	0.00	13.40
Earning Retention Ratio (%)	55.34	0.00	0.00	0.00	45.90
Cash Earning Retention Ratio (%)	75.05	0.00	0.00	0.00	86.60
Interest Coverage Ratio (X)	5.56	5.14	4.75	2.29	3.16
Interest Coverage Ratio (Post Tax) (X)	3.20	3.17	2.44	1.04	1.61
Enterprise Value (Cr.)	8395.45	3617.34	4747.91	3588.69	2863.11
EV / Net Operating Revenue (X)	1.08	0.43	0.59	0.70	0.38
EV / EBITDA (X)	9.48	4.28	5.66	6.98	3.83
MarketCap / Net Operating Revenue (X)	0.91	0.26	0.37	0.33	0.06
Retention Ratios (%)	55.33	0.00	0.00	0.00	45.89
Price / BV (X)	2.00	0.66	1.02	0.62	0.18
Price / Net Operating Revenue (X)	0.91	0.26	0.37	0.33	0.06
EarningsYield	0.04	0.18	0.07	-0.01	0.18

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Arvind Ltd as of December 26, 2024 is: 480.32

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 December 26, 2024, Arvind Ltd is Undervalued by 18.89% compared to the current share price 404.00

Intrinsic Value of Arvind Ltd as of December 26, 2024 is: 808.35

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 December 26, 2024, Arvind Ltd is Undervalued by 100.09% compared to the current share price 404.00

Last 5 Year EPS CAGR: 68.29%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The company has higher reserves (2,747.23 cr) compared to borrowings (2,520.69 cr), indicating strong financial stability. The company has shown consistent growth in sales (6.92 cr) and profit (349.15 cr) over the years.	The stock has a low average ROCE of 11.33%, which may not be favorable. The stock has a high average Working Capital Days of 77.67, which may not be favorable. 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: 36.5 (Industry average Stock P/E: 34.68)
  - 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.

INDUSTRY	ADDRESS	CONTACT
Textiles - Denim	Naroda Road, Ahmedabad Gujarat 380025	investor@arvind.in http://www.arvind.com

Management
Name	Position Held
Mr. Sanjay S Lalbhai	Chairman & Managing Director
Mr. Punit S Lalbhai	Vice Chairman & Exe.Director
Mr. Kulin S Lalbhai	Executive Director
Mr. Jayesh Shah	Executive Director & Group CFO
Mr. Arpit K Patel	Independent Director
Mr. Ismet Tehmesp Khambatta	Independent Director
Mr. Nilesh Shah	Independent Director
Mr. Dileep C Choksi	Independent Director
Dr. Bakul Dholakia	Independent Director

FAQ

What is the latest intrinsic value of Arvind Ltd?

The latest intrinsic value of Arvind Ltd as on 26 December 2024 is ₹480.32, which is 18.89% higher than the current market price of ₹404.00. The stock has a market capitalization of 10,575 Cr. and recorded a high/low of 450/236 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹3,249 Cr and total liabilities of ₹7,463 Cr.

What is the Market Cap of Arvind Ltd?

The Market Cap of Arvind Ltd is 10,575 Cr..

What is the current Stock Price of Arvind Ltd as on 26 December 2024?

The current stock price of Arvind Ltd as on 26 December 2024 is 404.

What is the High / Low of Arvind Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Arvind Ltd stocks is 450/236.

What is the Stock P/E of Arvind Ltd?

The Stock P/E of Arvind Ltd is 36.5.

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 0.93 %.

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.