Arvind Ltd share price target 2025, 2030

Arvind Ltd share price target 2025, 2030: Hello friends! Today we will explore Arvind Limited, a textile and real estate company which has doubled investors’ money within one year and produced 52% returns over three years.

We will analyse the revenue, balance sheet and profit numbers to predict Arvind Ltd share price target 2025, 2030.

Overview of Arvind Ltd.

Arvind Ltd was established by three brothers – Kasturbhai Lalbhai, Narottambhai Lalbhai and Chimanbhai Lalbhai in 1931 and has grown into one of India’s premier textile and apparel firms since that time.

Arvind Ltd specializes in producing denim, woven and other fabrics; some of its most acclaimed brands include Flying Machine, U.S. Polo Assn. Tommy Hilfiger, Calvin Klein etc. The company also constructs buildings and villas.

Arvind Ltd also has an international footprint as it exports products to markets in the USA, UK and EU.

Arvind Ltd operates nine manufacturing facilities across Gujarat, Karnataka and Maharashtra and generates 49% of their annual revenues from domestic markets and 51% internationally.

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Arvind Ltd share price target table

In this post we have analysed the Arvind Ltd thoroughly. However, if you do not want to read the whole post, you can refer to the table below for share price target table of Arvind Ltd from 2024 to 2030.

Arvind Ltd share price target 2024

Arvind Ltd market cap of Rs 7194 crores make it a mid cap company. The current price of the share is Rs 275 with a 52 week high of Rs 319 and low of Rs 78.4. The company is profitable and the trailing twelve months profits are Rs 321 crores. 

Arvind Ltd is also making 12.6% return of capital employed (ROCE) which shows that the company is utilising the capital well and also increasing it. 

As per our analysis, the share price target of Arvind Ltd in 2024 will be Rs 375.78 .

Arvind Ltd share price target 2025

The stock P/E ratio of 22.4 shows that the company is performing well. However, if we compare the company’s P/E ratio with the sector’s P/E ratio of 19.7, we conclude that Arvind Ltd’s share is overvalued right now and since it is near its all time high, we would not recommend you to buy it at this price. We suggest you wait for some time and buy the stock at around Rs 205.

The sales numbers of the company suggest that the company is getting consistent orders from the customers and it is making an average sales of Rs 1909 crores every quarter. 

We project that Arvind Ltd will achieve a share price target of Rs 440.46 in 2025.

Arvind Ltd share price target 2026

Arvind Ltd has authorised one of its subsidiary companies, Arvind Smart Spaces Limited (ASSL), to build 353 villas on approximately 330,000 square yards on Arvind Ltd’s land, using four phases for development from FY 21-2026 – at an approximate cost of Rs 200 crores and without incurring external borrowings for this project. 

This move should bring Arvind Ltd total revenue from FY21-FY26 of Rs 425 Crores with no external debt required from external loans for funding this endeavour!

If the company manages to achieve the real estate targets as well, Arvind Ltd should achieve a share price target of Rs 512.58 by the end of 2026.

Arvind Ltd share price target 2027

The current debt of Arvind Ltd stands at Rs 1544 crores and the company has been reducing it annually. During the period of March 2019 to March 2021 the company reduced the debt by Rs 700 crores. The ideal debt to equity ratio is less than 1 and for Arvind Ltd, it is only 0.46 which shows that the company is financially very strong and capable of paying off its borrowings.

The expected share price target for Arvind Ltd in 2027 is Rs 591.90. 

Arvind Ltd share price target 2028

Right now due to inflation and economic recession in the US and UK, the demand for the company’s products is low. Some of the foreign apparel stores have gone down and some stores have also shut down. Right now the company is only getting increased demand from India. 

As the inflation comes down and the recession dissipates, the exports of the company should increase. That is why we project Arvind Ltd to reach a share price target of Rs 680.46 in 2028.

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Arvind Ltd share price target 2029

Arvind Ltd has given a return of 201% in trailing twelve months and 52.9% returns in the last 3 years. The compound 5 years returns are 26.8%. Hence, the company is consistently giving good returns to its investors. 

If the bullish trend continues, the Arvind Ltd share price target in 2029 will be Rs 745.10. 

Arvind Ltd share price target 2030

The challenge Arvind fashions is facing right now is poor sales growth of only 4.29% which is due to the inflation internationally. The average return on equity in the last 3 years is 6.79% which could be demotivating for long term investors. Due to the slow down in performance, the promoter’s holding has decreased by -3.92% in the last 3 years. 

Promoters know the company better than the investors and if they sell their share, it is either to raise funds or they see some issues with the company.

The growth will be slow for Arvind Ltd. We project a share price target of Rs 801.19 for Arvind Ltd by the end of 2030.

Profit and loss analysis of Arvind Ltd

Consolidated Figures in Rs. Crores

Profit and loss statements of a company are important to know its financial health. Revenue, expenses and net profits help us determine the efficiency of the company. Let’s analyse the P & L statement of Arvind Ltd to see what to expect from the company in the near future.

Sales

Firstly, Arvind Ltd has been making excellent sales for the last 10 years. However the sales growth is really slow. The company was making sales of Rs 8011 crores in 2016 and  in March 2022 the sales numbers were the same. The company needs to expand its outlets chain or acquire new clients to improve the sales numbers.

Expenses

When we look at the expenses, they have increased parallelly to the sales. The sales of the company was Rs 8382 crores in March 2023 and the expenses were Rs 7554 crores. These expenses include 53% material and 21% manufacturing costs. 

Operating profit

The operating profit margin of Arvind Ltd in March 2023 was 10% and the amount of operating profit was Rs 828 crores which is a great number. After deducting interest, other income and depreciation the company made a total of Rs 484 crores in profit before tax. 

Net profit

Where Arvind Ltd managed to save profits was the tax department. The company paid only 15% tax in March 2023 versus the 38% tax paid in March 2022. The net profit of the company increased to Rs 413 crores in March 2023 from Rs 242 crores in March 2022.

In summary, the company is making great sales but the sales growth is weak. The company also needs to cut down on expenses to improve operating profit margins. 

Balance sheet analysis of Arvind Ltd

For the purpose of balance sheet analysis of Arvind Ltd, we will compare the data of March 2022 with March 2023. This will help us find the improvements the company is making.

Consolidated Figures in Rs. Crores

Equity capital

The equity capital has increased by only Rs 1 crores from Rs 261 crores to Rs 262 crores. This means that the company has issued new shares to acquire more capital.

Reserves

The reserves of the company have also increased from Rs 2690 crores to Rs 3084 crores. With strong reserves, the company can face untoward financial conditions, expand its network and make better investments.

Debt/Borrowings

The borrowings/Debt of the company has decreased from Rs 1865 crores to Rs 1517 crores and this has been the trend since last 5 years. The company is paying off the debt frequently which is another positive.

Other liabilities have reduced from Rs 2881 crores to Rs 2035 crores. The main reason for decrease in other liabilities is the reduction in trade payables.

Assets

Fixed assets of the company have reduced slightly from Rs 3481 to Rs 3427 crores. This reduction is primarily due to sale of intangible assets. If we add investments and other assets, the total assets of the company in March 2023 stand at Rs 6898 crores. 

To conclude, Arvind Ltd has a strong balance sheet with continuously decreasing debt and liabilities. The total assets have decreased and that is a point of concern. Overall, the company has all the features of a good balance sheet including  intelligent working capital, positive cash flow, a balanced capital structure, and income generating assets.

Conclusions

In this post we discussed Arvind Ltd share price target 2025, 2030 and revenue, profit/loss statement and balance sheet details of this company. Arvind is an excellent long-term investment opportunity with returns already generated for investors for five-6 years running. With current prices hovering near 52 week high this might not be an ideal time for entry. Although more conservative investors should conduct extensive research before investment. Thank you for taking part and reading all the way to its conclusion!

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