Arvind Fashions Ltd (ARVINDFASN) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

PDS

V2 Retail

Garware Tech

Gokaldas Exports

Indo Count Inds.

Arvind Fashions

Sanathan Textile

Alok Industries

Raymond Lifestyl

Aditya Bir. Fas.

Kusumgar

Why is Arvind Fashions Ltd ?

Flat results in Jun 26

PBT LESS OI(Q) At Rs 33.43 cr has Fallen at -45.6% (vs previous 4Q average)
PAT(Q) At Rs 9.86 cr has Fallen at -71.5% (vs previous 4Q average)
DEBT-EQUITY RATIO(HY) Highest at 1.42 times

Below par performance in long term as well as near term

Along with generating -12.19% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Garments & Apparels)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Arvind Fashions for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Arvind Fashions

-12.19%

-0.35

34.95%

Sensex

-2.63%

-0.19

13.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.52%

EBIT Growth (5y)

31.16%

EBIT to Interest (avg)

1.80

Debt to EBITDA (avg)

3.26

Net Debt to Equity (avg)

1.35

Sales to Capital Employed (avg)

1.99

Tax Ratio

28.64%

Dividend Payout Ratio

-59.96%

Pledged Shares

8.31%

Institutional Holding

37.14%

ROCE (avg)

10.47%

ROE (avg)

5.16%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

6.48

EV to EBIT

17.15

EV to EBITDA

10.11

EV to Capital Employed

3.33

EV to Sales

1.36

PEG Ratio

0.07

Dividend Yield

0.70%

ROCE (Latest)

18.73%

ROE (Latest)

14.68%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

15What is working for the Company

PAT(Latest six months)

Higher at Rs 52.54 cr

ROCE(HY)

Highest at 20.04%

DEBTORS TURNOVER RATIO(HY)

Highest at 7.01 times

-11What is not working for the Company

PBT LESS OI(Q)

At Rs 33.43 cr has Fallen at -45.6% (vs previous 4Q average

PAT(Q)

At Rs 9.86 cr has Fallen at -71.5% (vs previous 4Q average

DEBT-EQUITY RATIO(HY)

Highest at 1.42 times

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.79 times

EPS(Q)

Lowest at Rs 0.72

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Here's what is working for Arvind Fashions

Debtors Turnover Ratio- Half Yearly

Highest at 7.01 times

in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Arvind Fashions

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 33.43 cr has Fallen at -45.6% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 61.41 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 9.86 cr has Fallen at -71.5% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 34.63 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Debt-Equity Ratio - Half Yearly

Highest at 1.42 times and Grown

each half year in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio- Half Yearly

Lowest at 3.79 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Earnings per Share (EPS) - Quarterly

Lowest at Rs 0.72

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)