Arvind Fashions Ltd. share price target and research reports

Latest analyst research reports with target prices and PDF download for ARVINDFASN, BSE:542484 Arvind Fashions Ltd.

Arvind Fashions Ltd.

12 Feb 2020

564.65

0.05%

Arvind Fashions (3QFY20): Performance par for the course. Maintain BUY

Buy: Arvind Fashions Ltd.

HDFC Securities

Given the brand equity of AFL's power brands (60% of sales), a recovery in this segment is a foregone conclusion. This coupled with multiple margin levers and an increasingly lighter expansion strategy should ensure AFL's return profile has a U-shaped recovery. (6.3% by FY22 vs -3.7% in FY20E). We remain circumspect on the value fashion play though, given AFL's lack of execution history. Valuations at <1x FY20E Power brand sales seem undemanding. While we maintain our estimates, a DCF-roll-over to FY22 leads to a marginal revision in TP to Rs. 460/sh (earlier Rs. 450), implying 11x F22 EV/EBITDA). Reiterate BUY. Near double-digit (-9.8%) top-line de-growth was par for the course for Arvind Fashion (AFL) as FY20 is all about 1. fixing working capital woes in brands biz via reducing reliance on long-credit cycle accounts (MBOs), 2. Reining in losses of the value fashion play Unlimited. 3). Non-core brand exits.

Arvind Fashions Ltd. is trading above all available SMAs

VOTE: Is Arvind Fashions Ltd. worth buying?

53 Votes:

Buy 75.47%

Sell 13.21%

Hold 11.32%

RESEARCH REPORTS

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