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Check Before You Invest : Aarnav Fashions Ltd

BSE: 539562 NSE: AARNAV ISIN: INE750R01016
  |   Sector:  Textiles & Apparels   |   Industry:  Textile

Snapshot

Q.1 Which industry/sub-sector does Aarnav Fashions Ltd belong to?
Aarnav Fashions Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.
Q.2 Is Aarnav Fashions Ltd a good quality company?
Aarnav Fashions Ltd is a weak quality company, based on a inconsistent 10 year financial track record.
Q.3 Is Aarnav Fashions Ltd undervalued or overvalued?
Aarnav Fashions Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Aarnav Fashions Ltd a good buy now?
Aarnav Fashions Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Aarnav Fashions Ltd?
Aarnav Fashions Ltd revenue growth is 6.3% for FY-2025 , which is below its 5 year CAGR of 60.7% , indicating slower growth.
Q.2 Gross Profit margin of Aarnav Fashions Ltd?
Aarnav Fashions Ltd Gross profit margin which is the profit after deduction of direct costs, is 5.4% for FY-2025 , which is above its 5 year median of 4.8% , indicating increasing margins.
Q.3 Operating Profit Margin of Aarnav Fashions Ltd?
Aarnav Fashions Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.79% for FY-2025 , which is above its 5 year median of 7.62% indicating increasing margins.
Q.4 Net Profit Margin of Aarnav Fashions Ltd?
Aarnav Fashions Ltd Net Profit Margin is 2.44% for FY-2025 , is above with its 5 year median of 2.14%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 5.4 4.8
Operating Profit Margin 7.79 7.62
Net Profit Margin 2.44 2.14
Q.5 Return on Asset of Aarnav Fashions Ltd?
Aarnav Fashions Ltd Return on Asset is 2.39%, which is above its 5 year historical median of 1.96%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Aarnav Fashions Ltd?
Aarnav Fashions Ltd Return on equity is 5.06% for FY-2025 , which is in line with its historical median of 5.06%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Aarnav Fashions Ltd?
Aarnav Fashions Ltd Return on capital employed is 7.83% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Aarnav Fashions Ltd?
Aarnav Fashions Ltd Cash conversion cycle is 165 days, below its historical median of 168 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.98 0.88
ROE 5.06 5.06
ROCE 7.83 7.83
Cash Conversion Cycle 165 days 168 days
Q.9 Debt to Equity ratio of Aarnav Fashions Ltd?
Aarnav Fashions Ltd Debt-to-Equity ratio is 0.53 , which is above with the industry average of 0.42 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Aarnav Fashions Ltd?
Aarnav Fashions Ltd Debt to cash flow from operations is 3.95 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Aarnav Fashions Ltd?
Promoters hold 66.53% of the Aarnav Fashions Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Aarnav Fashions Ltd vs industry peers?
Aarnav Fashions Ltd revenue CAGR is 60.66% , compared to the industry median CAGR of 0.00% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 379.1 96.6
Gross Profit 20.5 3.2
Operating Profit 30 5.7
Net Profit 9 1.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.98 0.95
ROE 5.06 4.25
ROCE 7.83 7.55
Cash Conversion Cycle (days) 164.73 102

Valuation & price assessment

Q.1 Stock return of Aarnav Fashions Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of -21.11% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - -21.1% -7.6% -51.1%
Q.3 Valuation ratios of Aarnav Fashions Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 14.66 26.30 30.76
Price to Book 0.54 3.04 1.39
Price to Sales 0.25 1.54 1.01
EV to EBITDA 7.22 18.84 9.47

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