Arvind Limited

Consumer Cyclical — Textile Manufacturing · NSE

₹524.10+₹8.35 (+1.62%)

DalalBaazaar Score

54 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Low

Driven by small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with modest growth. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

The 60-second version of Arvind Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Arvind Limited, together with its subsidiaries, manufactures, markets, retails, supplies, and exports textiles in India and internationally. The company operates through Textiles, Advanced Material, and Others segments.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees31,041

Annual revenue₹8,960 Cr

How does it make money?

Turns over ₹8,960 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 31,041 employees supports ₹28.9 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹28.9 lakh

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 15.4% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE25.9%

What is the outlook?

7 analysts covering the stock expect revenue to grow about 11.8% and earnings to grow about 24.6% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+11.8%

Est. earnings growth+24.6%

Analysts7

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +10% while net margin moved -7% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+10%

Margin effect-7%

DalalBaazaar Score

54/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 3.4% — barely ahead of inflation
✗ Profit CAGR of only 0.8%

Quality vs. Valuation

Company Quality

54/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

51/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

33.2x

3Y Median

26.1x

40 monthly readings · mean 25.6x · range 11.2x–43.5x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 27% above its 3y median of 26.1x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 52% below the peer median of 69.2x.

vs. its own history

Expensive

26.1x median over 40 months · +27%

vs. sector peers

Cheap

69.2x median of 4 peers · -52%

vs. generic bands

Fair

15x–35x

EV/EBITDA

14.1x

PEG

43.25

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 watch

🟡Receivables growing faster than salesFinancial
Receivables up 49% against revenue up 10% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 52% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹344 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 49% against revenue up 10%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 27% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Growth barely outpaces inflation
Revenue compounding at 3.4% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 10%✓ 12.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✗ 3.4% CAGR
Latest reported year was 24.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹344 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 12%✓ 15.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 6 neutral · 0 weak

Market Cap

₹13,739 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

33.2x

Fair

Fairly valued against the generic band

P/B Ratio

3.40x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹15.8

Profitable

Profitable on a per-share basis

ROE

10.2%

Moderate

Moderate capital efficiency

ROCE

15.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.40x

Low

Conservative leverage

Revenue Growth (YoY)

24.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

0.5%

Modest

Slow profit growth

Dividend Yield

0.86%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹344 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

20.4x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

5.9%

Average

Average margins

Net Margin

4.2%

Average

Average bottom-line conversion

Current Ratio

1.14

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.19

Defensive

Steadier than the market

52W Range Position

74%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

533.1 / 545.2

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

37.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹8,115 Cr	₹7,472 Cr	₹8,016 Cr	₹8,960 Cr	+3.4%
EBITDA	₹897 Cr	₹901 Cr	₹914 Cr	₹1,084 Cr	+6.5%
EBITDA Margin	11.1%	12.1%	11.4%	12.1%	—
PAT (Net Profit)	₹405 Cr	₹337 Cr	₹353 Cr	₹414 Cr	+0.8%
EPS	₹15.49	₹12.86	₹13.49	₹15.79	+0.6%
ROE	12.1%	9.5%	9.3%	10.2%	—
ROCE	15.7%	15.0%	14.3%	15.4%	—
Total Debt	₹1,517 Cr	₹1,448 Cr	₹1,562 Cr	₹1,660 Cr	+3.0%
Free Cash Flow	₹462 Cr	₹418 Cr	₹228 Cr	₹344 Cr	-9.3%

🟢 Revenue has grown at 3.4% a year over 3 years.

🟢 EBITDA has grown at 6.5% a year over 3 years.

🟢 EBITDA Margin has risen from 11.1% to 12.1% over 3 years (+1.0 pts).

🟡 PAT (Net Profit) has been broadly flat over 3 years (0.8% a year).

🟡 EPS has been broadly flat over 3 years (0.6% a year).

🔴 ROE has fallen from 12.1% to 10.2% over 3 years (-1.9 pts).

🟡 ROCE has held roughly flat at 15.4% over 3 years.

🔴 Total Debt has grown at 3.0% a year over 3 years.

🔴 Free Cash Flow has shrunk at 9.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹8,836 Cr

Total Liabilities

₹4,695 Cr

Cash & Equivalents

₹87 Cr

Operating Cash Flow

₹867 Cr

Capex

-₹523 Cr

Shareholding (proxy)

Institutional Holding

30.9%

Insider Holding

40.5%

Corporate Actions

Dividend Rate

₹4.5

Ex-Dividend Date

04 Sept 2026

Analyst Consensus

Recommendations

6 Buy · 0 Hold · 1 Sell

Target Price (Mean)

₹646.29

+23.3% vs CMP

Target Range

₹565 – ₹700

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

1 positive4 mixed1 general

Arvind (NSEI:ARVIND) Stock Forecast & Analyst Predictions

Simply Wall Street, 14 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Textile Stocks To Buy: Gokaldas Exports To Arvind, Brokerage Bullish On THESE 3 Stocks On Healthy Valuation

Goodreturns, 17 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Arvind Anticipates ₹25-30 Crore EBITDA Hit from US Tariffs, Implements Multi-Pronged Strategy

scanx.trade, 13 Oct

Arvind Share Price Falls 5.12% on Price Action

Univest, 08 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

ARVIND Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Arvind Q1 Profit Rises 6% as Revenue Jumps 25%

HDFC Sky, 13 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Risk

MiddlingBusiness Quality

WeakGrowth · Profitability · Valuation

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

1 of 5 tripwires tripped — Revenue growth stays above 4% a year · see Key things to watch ↑