Arvind Fashions Ltd, with a market capitalization of Rs. 6,882 crores, a debt-to-equity ratio of 1.15 and a return on equity of 8.8%, demonstrates a significant presence in fashion retail through premium brands and strategic partnerships. Innovation drives retail growth. Market expansion strengthens leadership position.
Table of Contents
Overview Of the Textile Sector
The textile sector is experiencing transformation driven by changing consumer preferences, sustainable fashion trends and digital retail integration. Industry players focus on brand building, supply chain optimization and technological advancement for competitive advantage. Digital transformation reshapes retail dynamics.
Rising raw material costs and global competition create challenges while presenting opportunities in premium fashion, sustainable clothing and direct-to-consumer channels. Innovation in manufacturing and retail drives growth. Sustainability initiatives gain importance.
Financial Analysis of Arvind Fashion Ltd
| FY 24 | FY 23 | FY 22 | |
| Sales | 4,259 | 4,421 | 3,056 |
| Expenses | 3,749 | 3,968 | 2,876 |
| Operating Profit | 511 | 453 | 180 |
| OPM % | 12 | 10 | 6 |
| Other Income | 28 | 53 | 67 |
| EBITDA | 544 | 505 | 247 |
| Interest | 144 | 138 | 124 |
| Depreciation | 230 | 239 | 233 |
| Profit Before Tax | 164 | 128 | -110 |
| Tax % | 34.94 | 31.33 | 5.28 |
| Net Profit | 137 | 87 | -237 |
| EPS | 6.06 | 2.76 | -20.19 |
| Dividend Payout % | 20.63 | 0 | 0 |
* Consolidated Figures in Rs. Crores
Arvind Fashion Limited Company Metrics
Arvind Fashions Ltd reported robust performance in FY 24, with sales of ₹4,259 crores, net profit of ₹137.11 crores and total assets of ₹3,607 crores. Key financial metrics reflect improvements in profitability, operating efficiency and growth compared to FY 23.
Sales Growth: Sales slightly decreased to ₹4,259 crores in FY 24 from ₹4,421 crores in FY 23, reflecting a 3.66% decline, attributed to market fluctuations and changes in consumer demand.
Expense Trends: Expenses reduced to ₹3,749 crores in FY 24 from ₹3,968 crores in FY 23, a 5.51% decrease. This highlights effective cost-control measures and operational efficiency improvements.
Operating Profit & Margins: Operating profit increased to ₹510.53 crores in FY 24, up from ₹452.64 crores in FY 23, showcasing a 12.78% growth. Operating profit margin (OPM) improved to 11.89% from 10.12%, indicating stronger profitability.
Profitability Indicators: Net profit grew significantly to ₹137.11 crores in FY 24 from ₹86.96 crores in FY 23, a 57.64% increase. EPS rose to ₹6.06 compared to ₹2.76, reflecting enhanced shareholder returns.
Taxation & Dividend: The tax rate increased to 34.94% in FY 24 from 31.33% in FY 23. Dividend payout resumed at 20.63% in FY 24, showcasing a commitment to rewarding shareholders.
Key Financial Metrics: Reserves grew to ₹950.10 crores in FY 24, up from ₹856.51 crores in FY 23. Current liabilities reduced to ₹1,720 crores, reflecting improved financial management, while contingent liabilities increased slightly to ₹129.94 crores.
Arvind Fashion Stock Performance
Arvind Fashions Ltd delivered steady returns, achieving a 1-year ROI of 25.9%, a 3-year ROI of 24.1% and a 5-year ROI of 12.1%. These figures highlight consistent performance and moderate growth potential across varying investment horizons.
| Period | Return on Investment (%) |
| 1 Year | 25.9 |
| 3 Years | 24.1 |
| 5 Years | 12.1 |
Arvind Fashion Shareholding Pattern
Arvind Fashions Ltd’s shareholding pattern for Sept-24 shows promoters holding 35.2%, a slight decrease from 35.21% in June-24. FII dropped to 10.44%, DII rose to 21% and retail participation declined to 33.34%, reflecting dynamic investor activity.
| All values in % | Sep-24 | Jun-24 | Mar-24 |
| Promoters | 35.2 | 35.21 | 36.78 |
| FII | 10.44 | 15.58 | 15.73 |
| DII | 21 | 11.93 | 10.66 |
| Retail & others | 33.34 | 37.27 | 36.82 |
Arvind Fashion Partnerships and Acquisitions
Arvind Fashion has established strategic partnerships with global fashion brands and retail technology providers. Their collaborations enhance product portfolio through international brand licensing, digital retail solutions and omnichannel presence. Brand partnerships drive growth. Global alliances strengthen market position.
Recent alliances strengthen their position in premium fashion segments and online retail platforms. These partnerships focus on expanding brand presence while enhancing customer experience through technology integration and innovative retail solutions. Digital capabilities enhance competitiveness.
Strategic investments in retail technology and brand acquisitions expand market reach. These collaborations improve operational efficiency through digital transformation and enhanced supply chain management capabilities. Excellence drives success. Innovation supports sustainable growth.
Arvind Fashion Peer comparison
Arvind Fashions Ltd, with a market cap of ₹6,882 crores and a P/E of 80, outperformed peers like Honasa Consumer (₹8,028 crores, -43.93%) and MMTC (₹10,980 crores, 22.41%) in 1-year returns at 25.92%, showcasing strong retail sector performance.
| Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | ROE % | EPS 12M Rs. | 1Yr return % | ROCE % | Div Yld % | CP Rs. |
| Adani Enterp. | 2409.95 | 278151.79 | 49.28 | 9.73 | 48.56 | -15.41 | 9.87 | 0.05 | 2409.95 |
| Vishal Mega Mart | 106.14 | 47855.55 | 105.57 | 8.41 | 1.02 | 0 | 11.36 | 0 | 106.14 |
| Aegis Logistics | 813 | 28,540 | 49 | 15.13 | 17 | 131 | 14.74 | 0.8 | 813.1 |
| Cello World | 755 | 16,681 | 49 | 44.21 | 15.77 | -4.06 | 36.28 | 0.2 | 755.2 |
| Redington | 202.44 | 15826.24 | 14 | 16.78 | 15.42 | 14.5 | 19.46 | 3.06 | 202.44 |
| MMTC | 73.2 | 10980 | 52 | 9.97 | 1.37 | 22.41 | 9.23 | 0 | 73.2 |
| Honasa Consumer | 247.15 | 8,028 | 106 | 0 | 2.34 | -43.93 | 17.1 | 0 | 247.15 |
| Arvind Fashions. | 516 | 6,882 | 80 | 8.8 | 7.99 | 25.92 | 13.98 | 0.24 | 516.45 |
Future of Arvind Fashion
Arvind Fashion is strategically expanding its brand portfolio and retail presence through digital transformation and omnichannel initiatives. Their focus includes strengthening premium brand offerings, enhancing customer experience and optimizing operational efficiency. Technology drives customer engagement.
The company plans significant investments in retail technology and supply chain optimization. Emphasis on sustainable fashion and premium brand development supports market expansion and customer engagement across segments. Innovation enhances market positioning.
Their roadmap emphasizes a digital-first approach and sustainable practices. The focus remains on brand building while expanding the retail footprint through innovative store concepts and enhanced online presence. Strategic initiatives ensure growth momentum.
How To Invest In Arvind Fashion Share?
To invest in Arvind Fashion’s shares, open a demat and trading account with a broker like Alice Blue. Complete the KYC process, research Arvind Fashions’ performance and place a buy order during market hours, specifying the desired quantity and price for a smooth transaction.
Ensure your demat account is active and sufficiently funded. Evaluate Arvind Fashions’ financial performance, growth strategy and market trends. Use fundamental or technical analysis to identify an ideal entry point, aligning your investment goals with the company’s retail industry potential.
After purchasing the shares, monitor your portfolio regularly. Stay updated with Arvind Fashions’ quarterly reports, business developments and market dynamics. This proactive approach helps optimize returns, mitigate risks and adjust holdings based on evolving market conditions and company performance.
Arvind Fashion – FAQs
Arvind Fashion maintains a market capitalization of Rs. 6,882 crores, reflecting its position in premium fashion retail. Strong brand portfolio and expanding retail presence drive valuation growth. Market confidence supports development. Strategic initiatives enhance value.
Arvind Fashion maintains leadership in premium fashion retail with a strong brand portfolio and nationwide presence. Their innovative retail concepts and digital initiatives establish a significant market presence. Brand excellence drives growth. Market penetration strengthens leadership.
Arvind Fashion focuses on brand licensing and strategic partnerships, acquiring rights for international fashion brands. Their portfolio includes premium brands through licensing agreements and joint ventures. Growth remains brand-focused. Strategic acquisitions enhance offerings.
Arvind Fashion operates in premium fashion retail, managing a portfolio of international and domestic brands. They provide fashion apparel, accessories and lifestyle products through retail stores and digital platforms. Innovation drives customer engagement. Market expansion continues.
Arvind Fashion operates under the Lalbhai Group leadership, with professional management overseeing operations. The company maintains strong corporate governance while driving strategic growth initiatives. Experienced leadership ensures success. Vision guides growth.
Major shareholders include promoter group entities, institutional investors and public shareholders. The ownership structure supports strategic decision-making while maintaining market confidence and growth focus. Diverse ownership enhances governance. Stability drives progress.
Arvind Fashion operates in the fashion retail industry, specializing in premium apparel brands, lifestyle products and accessories through multi-brand retail and digital commerce platforms. Innovation drives transformation. Market dynamics shape strategy.
Arvind Fashion demonstrates strong retail growth through expanding store networks, digital sales channels and brand portfolio enhancement. Premium segment focus and omnichannel presence drive revenue growth. Strategic expansion ensures sustainability.
Investors can purchase Arvind Fashion shares through registered brokers or online trading platforms after opening a demat and trading account with alice blue. Systematic investment plans offer growth opportunities. Long-term investment builds wealth.
Current market metrics, brand portfolio strength and retail expansion plans indicate a balanced valuation. Strong fundamentals and strategic growth initiatives support market position and value. Growth potential justifies valuation.
Arvind Fashion’s future outlook remains positive with a focus on digital transformation, premium brand expansion and sustainable fashion initiatives. Strategic retail growth and innovation drive long-term success. Market leadership strengthens position.
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Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
