Check Before You Invest : Arvind Ltd

Snapshot

Q.1 Which industry/sub-sector does Arvind Ltd belong to?

Arvind Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.

Q.2 Is Arvind Ltd a good quality company?

Arvind Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Arvind Ltd undervalued or overvalued?

Arvind Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Arvind Ltd a good buy now?

Arvind Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Arvind Ltd?

Arvind Ltd revenue growth is 7.6% for FY-2025, which is above its 5-year CAGR of 2.48%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Arvind Ltd?

Arvind Ltd Return on capital employed is 13.98% for FY-2025, which is in line with its 5-year historical median of 13.64%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.3 Return on Asset of Arvind Ltd?

Arvind Ltd Return on Asset is 4.81%, which is in line with its 5-year historical median of 4.81%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Arvind Ltd?

Arvind Ltd Return on equity is 10.04% for FY-2025, which is in line with its 5-year historical median of 10.04%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Arvind Ltd?

Arvind Ltd Cash conversion cycle is 85 days, above its 5-year historical median of 64 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.12	1.12
ROE	10.04	10.04
ROCE	13.98	13.64
Cash Conversion Cycle	85 days	64 days

Q.6 Gross Profit margin of Arvind Ltd?

Arvind Ltd Gross profit margin which is the profit after deduction of direct costs, is 8.8% for FY-2025, which is above its 5-year median of 8.3%, indicating increasing margins.

Q.7 Operating Profit Margin of Arvind Ltd?

Arvind Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 10.87% for FY-2025, which is in line with its 5-year median of 10.42% indicating stable margins.

Q.8 Net Profit Margin of Arvind Ltd?

Arvind Ltd Net Profit Margin is 4.41% for FY-2025, is in line with with its 5-year median of 4.41%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	8.8	8.3
Operating Profit Margin	10.87	10.42
Net Profit Margin	4.41	4.41

Q.9 Debt to Equity ratio of Arvind Ltd?

Arvind Ltd Debt-to-Equity ratio is 0.36, which is lower with the industry average of 0.5, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Arvind Ltd?

Arvind Ltd Debt to cash flow from operations is 1.8, which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Arvind Ltd?

Promoters hold 39.53% of the Arvind Ltd, with 7.24% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Arvind Ltd vs industry peers?

Arvind Ltd revenue CAGR is 2.48%, compared to the industry median CAGR of 4.23%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	7.6	4.2
Gross Profit Growth	3.6	8.6
Operating Profit Growth	1.9	7.5
Net Profit Growth	4	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.12	0.98
ROE	10.04	6.1
ROCE	13.98	7.6
Cash Conversion Cycle (days)	85.08	109

Valuation & price assessment

Q.1 Stock return of Arvind Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 3.7% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	3.7%	41.3%	52.6%	10.6%

Q.3 Valuation ratios of Arvind Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	25.78	21.68	19.97
Price to Book	2.65	2.18	1.32
Price to Sales	1.16	0.97	1.06
EV to EBITDA	11.59	10.16	9.32

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