Arvind Limited stands as a stalwart in India’s textile industry, boasting a rich heritage spanning nearly eight decades. Renowned as one of the world’s foremost denim manufacturers, the company’s vertical integration sets it apart. Beyond denim, Arvind crafts an extensive array of high-quality textiles, including cotton shirting, knits, and bottom weights (Khakis). The company’s diverse portfolio extends to the creation of stylish Jeans and shirt garments.
In this article, we delve into the comprehensive landscape of Arvind Limited, exploring its significant contributions, industry leadership, and the varied facets that define its remarkable presence in the textile domain.
About Arvind Ltd
Arvind Limited, a textile powerhouse, strategically operates across two key business segments, with the Textiles Business commanding a substantial 84% of its revenues. Within this domain, the company excels in manufacturing Denims, Wovens, and Garments, contributing 22%, 39%, and 24% to the segment’s revenues in Q2 FY23, respectively. Leveraging a vertically integrated approach, Arvind covers the entire textile value chain, from cotton yarn to processed fabric to garment production, providing operational flexibility.
Notably, it stands among the world’s largest denim and woven fabric manufacturers, boasting impressive installed capacities. The company’s Advanced Materials Segment, constituting 12% of revenues, specializes in technical textiles with diverse applications, including human protection, filtration, and automotive industries. Geographically, Arvind derives 49% of its revenues domestically, while the remaining 51% emanates from key export markets, such as the USA, the UK, and the European Union, highlighting its robust global presence and market diversification.
Arvind Ltd Q3 2023 Financial Highlights
- Net Profit Surge: Consolidated net profit increased by 8.41% to Rs 94.32 crore.
- Revenue Decline: Despite profit growth, revenue from operations fell by 4.62% to Rs 1,888.24 crore.
- Previous Year’s Comparison: Net profit in Q3 FY23 stood at Rs 87 crore, showcasing a positive trajectory.
- Expense Reduction: Total expenses saw a decline of 6.42%, totaling Rs 1,777.31 crore.
- Segment-wise Performance: Textiles segment revenue reached Rs 1,425.50 crore, while “Advance Material” contributed Rs 344.59 crore in the December quarter.
- Total Income Dips: Overall income for the quarter decreased by 4.74% to Rs 1,897.65 crore.
- Impact of Price Deflation: Q3 FY24 revenue was affected by price deflation, as reported by the company.
- Board Decisions: The board approved the re-appointment of Arpit Patel as an independent director and the appointment of Nigam Shah as Chief Financial Officer.
- Global Presence: Arvind Ltd, a key player in the Indian textile industry, serves as an end-to-end supply chain partner for leading global fashion brands.
- Stock Performance: Shares of Arvind Ltd were trading at Rs 313.70 apiece on BSE, showing a marginal decrease of 0.13% from the previous close.
Below are the trading platforms that you can use to purchase Arvind ltd shares:
➤ Zerodha
➤ Upstox
➤ Groww
➤ AngelOne
➤ ICICIDirect
| When | Maximum Price | Minimum Price |
| January 2024 | 338.04 | 293.95 |
| February 2024 | 344.94 | 299.95 |
| March 2024 | 351.98 | 306.07 |
| April 2024 | 341.73 | 297.15 |
| May 2024 | 336.68 | 292.76 |
| June 2024 | 348.80 | 303.30 |
| July 2024 | 345.31 | 300.27 |
| August 2024 | 359.12 | 312.28 |
| September 2024 | 373.49 | 324.77 |
| October 2024 | 366.16 | 318.40 |
| November 2024 | 377.15 | 327.95 |
| December 2024 | 386.58 | 336.15 |
Arvind Ltd’s projected share price for 2024 shows a promising upward trajectory, with the stock anticipated to reach its maximum at ₹386.58 in December. The minimum price is projected at ₹293.95 in January. These estimates align with the company’s market cap of ₹8,188 Cr.
As of January 30, 2024, the current share price is ₹313, showcasing a high/low range of ₹318/77.7. With a stock P/E of 26.6 and a book value of ₹129, Arvind Ltd appears poised for positive market performance in the coming months.
| When | Maximum Price | Minimum Price |
| January 2025 | 394.31 | 303.31 |
| February 2025 | 404.42 | 311.09 |
| March 2025 | 420.19 | 323.22 |
| April 2025 | 411.95 | 316.89 |
| May 2025 | 399.95 | 307.66 |
| June 2025 | 417.95 | 321.50 |
| July 2025 | 409.76 | 315.20 |
| August 2025 | 422.43 | 324.95 |
| September 2025 | 437.21 | 336.32 |
| October 2025 | 448.58 | 345.06 |
| November 2025 | 459.80 | 353.69 |
| December 2025 | 471.29 | 362.53 |
In the forecast for Arvind Ltd’s share prices in 2025, an optimistic trend is evident, with the stock expected to reach a maximum of ₹471.29 in December and a minimum of ₹303.31 in January. These projections align with the company’s diversified revenue streams, including a 4% contribution from Water Treatment, Agriculture Produce, E-commerce, EPABX, One to Many Radio, and other emerging businesses. Arvind Ltd’s robust manufacturing capabilities are underlined by nine facilities situated in Gujarat, Karnataka, and Maharashtra.
Notably, the company’s strategic capacity expansion in its garments division in Karnataka led to a significant rise in garment shipments from 34 million to 42 million pieces during FY20.
| When | Maximum Price | Minimum Price |
| January 2026 | 485.43 | 373.41 |
| February 2026 | 497.88 | 382.98 |
| March 2026 | 517.29 | 397.92 |
| April 2026 | 507.15 | 390.12 |
| May 2026 | 492.38 | 378.75 |
| June 2026 | 514.54 | 395.80 |
| July 2026 | 504.45 | 388.04 |
| August 2026 | 520.05 | 400.04 |
| September 2026 | 538.25 | 414.04 |
| October 2026 | 552.24 | 424.80 |
| November 2026 | 566.05 | 435.42 |
| December 2026 | 580.20 | 446.31 |
In the outlook for Arvind Ltd’s share prices in 2026, a bullish trend is anticipated, with the stock projected to reach a maximum of ₹580.20 in December and a minimum of ₹373.41 in January. These forecasts coincide with the company’s strategic focus on debt reduction, showcasing a significant decrease of over ₹700 crore from March 2019 to March 2021, with a subsequent reduction of nearly ₹70 crore in FY22.
The company aims to further reduce debt by approximately ₹300 crores in FY23, emphasizing its commitment to financial prudence. Additionally, Arvind plans to monetize available freehold land near Ahmedabad for medium-term debt reduction. The company maintains a controlled annual capex plan of ₹150-₹200 crore each during FY23-FY25, contributing to its financial stability and growth.
| When | Maximum Price | Minimum Price |
| January 2027 | 591.81 | 455.24 |
| February 2027 | 606.98 | 466.91 |
| March 2027 | 630.65 | 485.12 |
| April 2027 | 618.29 | 475.61 |
| May 2027 | 600.28 | 461.75 |
| June 2027 | 627.29 | 482.53 |
| July 2027 | 614.99 | 473.07 |
| August 2027 | 634.01 | 487.70 |
| September 2027 | 656.20 | 504.77 |
| October 2027 | 673.26 | 517.90 |
| November 2027 | 690.10 | 530.84 |
| December 2027 | 707.35 | 544.11 |
In the forecast for Arvind Ltd’s share prices in 2027, an upward trajectory is predicted, with the stock expected to reach a maximum of ₹707.35 in December and a minimum of ₹455.24 in January. These projections align with the company’s strategic Land Development Agreement, as Arvind owns 525,000 square yards of freehold land near Ahmedabad.
In collaboration with Arvind SmartSpaces Ltd, Arvind is developing 353 villas on approximately 330,000 square yards. The anticipated sales value of this project, spanning Phase I to Phase IV, is around ₹425 crore over FY21-FY26, with construction costs of ₹200 crore expected to be funded entirely through customer advances, reflecting prudent financial management by Arvind.
| When | Maximum Price | Minimum Price |
| January 2028 | 721.49 | 555.00 |
| February 2028 | 739.99 | 569.23 |
| March 2028 | 768.85 | 591.43 |
| April 2028 | 753.78 | 579.83 |
| May 2028 | 731.82 | 562.94 |
| June 2028 | 764.76 | 588.27 |
| July 2028 | 749.76 | 576.74 |
| August 2028 | 772.95 | 594.58 |
| September 2028 | 800.00 | 615.39 |
| October 2028 | 820.80 | 631.39 |
| November 2028 | 841.32 | 647.17 |
| December 2028 | 862.36 | 663.35 |
- January 2028: ₹555.00 (Minimum)
- December 2028: ₹862.36 (Maximum)
| When | Maximum Price | Minimum Price |
| January 2029 | 879.60 | 676.62 |
| February 2029 | 902.16 | 693.97 |
| March 2029 | 937.34 | 721.03 |
| April 2029 | 918.96 | 706.89 |
| May 2029 | 892.20 | 686.30 |
| June 2029 | 932.34 | 717.19 |
| July 2029 | 914.06 | 703.13 |
| August 2029 | 942.33 | 724.87 |
| September 2029 | 975.31 | 750.24 |
| October 2029 | 1,000.67 | 769.75 |
| November 2029 | 1,025.69 | 788.99 |
| December 2029 | 1,051.33 | 808.72 |
- January 2029: ₹676.62(Minimum)
- December 2029: ₹1,051.33 (Maximum)
| When | Maximum Price | Minimum Price |
| January 2030 | 1,072.36 | 824.89 |
| February 2030 | 1,099.86 | 846.04 |
| March 2030 | 1,142.75 | 879.04 |
| April 2030 | 1,120.34 | 861.80 |
| May 2030 | 1,087.71 | 836.70 |
| June 2030 | 1,136.66 | 874.35 |
| July 2030 | 1,114.37 | 857.21 |
| August 2030 | 1,148.84 | 883.72 |
| September 2030 | 1,189.05 | 914.65 |
| October 2030 | 1,219.96 | 938.43 |
| November 2030 | 1,250.46 | 961.89 |
| December 2030 | 1,281.72 | 985.94 |
- January 2030: ₹824.89 (Minimum)
- December 2030: ₹1,281.72 (Maximum)
Financial Condition of Arvind Ltd: Last 5 Years
| 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|
| Sales (Rs. Crores) | 7,142 | 7,369 | 5,073 | 8,010 | 8,382 |
| Expenses (Rs. Crores) | 6,419 | 6,661 | 4,595 | 7,180 | 7,554 |
| Operating Profit (Rs. Crores) | 723 | 708 | 478 | 830 | 828 |
| OPM (%) | 10% | 10% | 9% | 10% | 10% |
| Other Income (Rs. Crores) | 39 | 5 | 15 | 13 | 100 |
| Interest (Rs. Crores) | 236 | 255 | 239 | 197 | 192 |
| Depreciation (Rs. Crores) | 235 | 290 | 285 | 254 | 253 |
| Profit Before Tax (Rs. Crores) | 290 | 168 | -31 | 393 | 484 |
| Tax (%) | 21% | 45% | 11% | 38% | 15% |
| Net Profit (Rs. Crores) | 228 | 92 | -27 | 242 | 413 |
| EPS (Rs.) | 8.75 | 3.70 | -0.64 | 9.14 | 15.47 |
| Dividend Payout (%) | 23% | 0% | 0% | 0% | 37% |
- Arvind Ltd witnessed a fluctuating financial trajectory over the last five years, with a notable recovery in sales, reaching Rs. 8,382 crores in 2023.
- Operational efficiency remained robust, maintaining a consistent Operating Profit Margin (OPM) at 10%.
- Other Income saw a substantial increase, reaching Rs. 100 crores in 2023, indicating diversified income streams.
- Despite challenges like increased interest and tax percentages, Arvind achieved a remarkable Profit Before Tax of Rs. 484 crores and a net profit of Rs. 413 crores in 2023.
- Earnings per share (EPS) demonstrated a significant surge from -0.64 in 2021 to an impressive 15.47 in 2023.
- Dividend payout percentage rebounded to 37% in the last fiscal year, showcasing a commitment to shareholder returns.
- The compounded sales and profit growth over 10 and 5 years remained stable, underlining the company’s resilience.
- Arvind’s stock exhibited a substantial Compound Annual Growth Rate (CAGR) over different periods, reflecting robust investor confidence.
- Return on Equity (ROE) remained consistently strong, indicating sound financial health and prudent management decisions.
FAQs
What is Arvind Ltd’s current market capitalization?
Arvind Ltd’s market capitalization is ₹8,188 Crores.
As of January 30, 2024, the current share price of Arvind Ltd is ₹313.
What is the high/low range for Arvind Ltd’s stock price?
Arvind Ltd’s stock has a high/low range of ₹318/77.7.
What is the current P/E ratio of Arvind Ltd’s stock?
Arvind Ltd’s stock has a P/E ratio of 26.6.
The book value per share of Arvind Ltd is ₹129.
Arvind Ltd’s share price target for December 2024 is ₹386.58, with a minimum of ₹293.95 in January.
In 2025, Arvind Ltd’s share price is expected to range between ₹303.31 (minimum in January) and ₹471.29 (maximum in December).
How has Arvind Ltd’s net profit performed in Q3 2023?
Arvind Ltd reported a consolidated net profit increase of 8.41% to ₹94.32 crore in Q3 2023.
What are the compounded sales and profit growth rates for Arvind Ltd?
Over 10 years, Arvind Ltd’s compounded sales and profit growth rates are 5% and 5%, respectively.
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In summary, Arvind Limited stands as an enduring force in India’s textile sector, boasting an impressive legacy and global acclaim. Its prowess as a leading denim manufacturer, coupled with a robust vertical integration model, solidifies its stature in the industry. The financials for Q3 2023 reflect resilience, with a notable uptick in net profit despite a dip in revenue.
Projections for Arvind Ltd’s share prices from 2024 to 2030 present an optimistic outlook, aligning with the company’s strategic initiatives and diversified revenue streams. With a market capitalization of ₹8,188 Crores, a P/E ratio of 26.6, and a book value of ₹129, the company appears well-positioned for favorable market performance.
While the improvement in debtor days signals operational efficiency, challenges persist. A meager 4.29% sales growth over the past five years, a modest 6.79% return on equity, and a decrease in promoter holding by -3.92% over the last three years pose concerns.
In conclusion, Arvind Ltd’s rich history, strategic acumen, and resilience paint a promising picture, yet the company must navigate challenges diligently to ensure sustained growth and overcome hurdles in the dynamic textile landscape.
What did we learn?
- 1 About Arvind Ltd
- 2 Arvind Ltd Q3 2023 Financial Highlights
- 3 How to Purchase Arvind Ltd Shares?
- 4 Arvind Ltd Share Price Target 2024 – 2030
- 5 Financial Condition of Arvind Ltd: Last 5 Years
- 6 FAQs
- 6.1 What is Arvind Ltd’s current market capitalization?
- 6.2 What is the current share price of Arvind Ltd?
- 6.3 What is the high/low range for Arvind Ltd’s stock price?
- 6.4 What is the current P/E ratio of Arvind Ltd’s stock?
- 6.5 What is the book value per share of Arvind Ltd?
- 6.6 What is Arvind Ltd’s share price target for 2024?
- 6.7 What is the projected share price range for Arvind Ltd in 2025?
- 6.8 How has Arvind Ltd’s net profit performed in Q3 2023?
- 6.9 What are the compounded sales and profit growth rates for Arvind Ltd?
- 7 Conclusion: Navigating Arvind Ltd’s Textile Odyssey
