Arvind has witnessed a steady rise in revenue share from its brand and retail business, which has grown by a healthy 23% CAGR over FY11-15. The company is also looking to expand its product range with focus on the speciality retail like GAP, The Children Place and Aeropostale. Higher contribution from fast growing Brands and Retail business is likely to boost the company's overall revenue and profit growth going forward.
Outlook : Technically, sharp swings are usually followed by consolidation and we’ve been seeing the same in Arvind for last one year. It’s trading within 235-350 price band while sustaining above its long term averages, indicating accumulation. And, it now looks all set for fresh break and to resume uptrend. Traders should go ahead and accumulate in the given range of 328-334 with close below stop loss of 304 for the target of 400.