Check Before You Invest : Arvind Fashions Ltd

BSE: 542484 NSE: ARVINDFASN ISIN: INE955V01021

| Sector: Retail | Industry: Retailing

Snapshot

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

Arvind Fashions Ltd belongs to the Retail sector, operating specifically within the Retailing segment.

Q.2 Is Arvind Fashions Ltd a good quality company?

Arvind Fashions Ltd is a average quality company, based on a somewhat consistent 9-year financial track record.

Q.3 Is Arvind Fashions Ltd undervalued or overvalued?

Arvind Fashions Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Arvind Fashions Ltd a good buy now?

Arvind Fashions Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Arvind Fashions Ltd?

Arvind Fashions Ltd revenue growth is 8.5% for FY-2025, which is above its 5-year CAGR of 5.04%, indicating faster growth.

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

Arvind Fashions Ltd Return on capital employed is 28.04% for FY-2025, which is above its 5-year historical median of 20.63%. 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 Fashions Ltd?

Arvind Fashions Ltd Return on Asset is 1.02%, which is in line with its 5-year historical median of 1.02%, indicating stable asset utilization efficiency.

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

Arvind Fashions Ltd Return on equity is 3.58% for FY-2025, which is in line with its 5-year historical median of 3.58%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Arvind Fashions Ltd?

Arvind Fashions Ltd Cash conversion cycle is 41 days, in line with its 5-year historical median of 41 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.73	1.59
ROE	3.58	3.58
ROCE	28.04	20.63
Cash Conversion Cycle	41 days	41 days

Q.6 Gross Profit margin of Arvind Fashions Ltd?

Arvind Fashions Ltd Gross profit margin which is the profit after deduction of direct costs, is 8.2% for FY-2025, which is above its 5-year median of 7.1%, indicating increasing margins.

Q.7 Operating Profit Margin of Arvind Fashions Ltd?

Arvind Fashions Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.33% for FY-2025, which is above its 5-year median of 10.81% indicating increasing margins.

Q.8 Net Profit Margin of Arvind Fashions Ltd?

Arvind Fashions Ltd Net Profit Margin is 0.74% for FY-2025, is in line with with its 5-year median of 0.74%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	8.2	7.1
Operating Profit Margin	13.33	10.81
Net Profit Margin	0.74	0.74

Q.9 Debt to Equity ratio of Arvind Fashions Ltd?

Arvind Fashions Ltd Debt-to-Equity ratio is 0.42, which is above with the industry average of 0.41, indicating higher debt levels in the industry.

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

Arvind Fashions Ltd Debt to cash flow from operations is 0.74, which is at a healthy level.

Ownership & governance

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

Promoters hold 35.10% of the Arvind Fashions Ltd, with 8.31% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

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

Arvind Fashions Ltd revenue CAGR is 5.04%, compared to the industry median CAGR of 14.61%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	8.5	14.6
Gross Profit Growth	20.3	NAN
Operating Profit Growth	18	NAN
Net Profit Growth	-68.2	14.3

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.73	1.14
ROE	3.58	7.96
ROCE	28.04	12.62
Cash Conversion Cycle (days)	41.47	48

Valuation & price assessment

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

Over the last 5 year(s), the stock has delivered a CAGR of 25.71% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	25.7%	15.4%	9.4%

Q.3 Valuation ratios of Arvind Fashions Ltd vs historical?

The current P/E is lower 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	-	103.27	37.16
Price to Book	5.74	6.16	2.93
Price to Sales	1.16	1.29	1.30
EV to EBITDA	8.77	10.81	14.03

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