Motilal Oswal has issued a comprehensive research report on Arvind Ltd. ARVND has an enviable brand portfolio comprising of in-house and licensed brands, with names like Flying Machine, Arrow, Tommy Hilfiger, Lee, Wrangler, US Polo, Izod, Gant, New Port, Excalibur etc. Arvind is on the verge of a turnaround and its’ margins will increase from 5.4% in FY13 to 12% by FY16 says Motilal Oswal. The RoCE is expected to improve from 14.5% in FY14E to 19% in FY16E and RoE from 14.2% in FY14E to 18.5% in FY16E, driven by an improvement in margins and reduction in capex intensity in the business. Arvind has a target price of Rs. 215, implying a gain of 46% from the CMP of Rs. 147.
Incidentally, Renuka Ramnath of Multiples Equity bought a lot of 98 lakh shares of Arvind at Rs. 149 per share by investing Rs. 146 crore on 01.01.2014