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Arvind Ltd

NSE: ARVIND BSE: 500101

351.65

(-0.44%)

Tue, 03 Mar 2026, 05:13 pm

Arvind Analysis

dividend

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Pros

  • Dividends paid are well covered by earnings (3.3x coverage).
  • Dividends after 3 years are expected to be well covered by earnings (3.4x coverage).
  • Arvind's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • Arvind's dividend is above the markets top 25% of dividend payers in India (3.08%).
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Cons

  • Dividend payments have increased, but Arvind only paid a dividend in the past 8 years.
  • Whilst dividend payments have been stable, Arvind has been paying a dividend for less than 10 years.

future

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Pros

  • Arvind's earnings growth is expected to exceed the India market average.
  • Arvind's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • Arvind's earnings are expected to exceed the low risk growth rate next year.
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Cons

  • Cash flow for Arvind is expected to decrease over the next 2 years.
  • Arvind's earnings are expected to grow by 19.1% yearly, however this is not considered high growth (20% yearly).
  • Arvind's net income is expected to increase but not above the 50% threshold in 2 years time.
  • Arvind is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • Performance (ROE) is not expected to exceed the current IN Luxury industry average.
  • A decline in Arvind's performance (ROE) is expected over the next 3 years.
  • Arvind's revenue is expected to decrease over the next 2 years.
  • Arvind's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
  • Arvind's revenues are expected to decrease over the next 1-3 years, this is below the India market average.

health

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Pros

  • Arvind is profitable, therefore cash runway is not a concern.
  • Arvind is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (101.5%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 1.3x debt.
  • Arvind's cash and other short term assets cover its long term commitments.
  • The level of debt compared to net worth has been reduced over the past 5 years (118.9% vs 86.4% today).
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Cons

  • Arvind's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Interest payments on debt are not well covered by earnings (EBIT is 2.2x annual interest expense, ideally 3x coverage).
  • Arvind's level of debt (86.4%) compared to net worth is high (greater than 40%).
  • High level of physical assets or inventory.

management

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Pros

  • The tenure for the Arvind board of directors is about average.
  • Sanjaybhai's compensation has been consistent with company performance over the past year, both up more than 20%.
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Cons

  • Sanjaybhai's remuneration is higher than average for companies of similar size in India.

misc

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Pros

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    Cons

    • Arvind is covered by less than 3 analysts.
    • Arvind has significant price volatility in the past 3 months.

    past

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    Pros

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      Cons

      • Arvind's 1-year earnings growth is negative, it can't be compared to the 5-year average.
      • Arvind's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
      • Arvind used its assets less efficiently than the IN Luxury industry average last year based on Return on Assets.
      • Arvind's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
      • Arvind has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
      • Arvind's 1-year earnings growth is negative, it can't be compared to the IN Luxury industry average.

      value

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      Pros

      • Arvind's share price is below the future cash flow value, and at a moderate discount (> 20%).
      • Arvind's share price is below the future cash flow value, and at a substantial discount (> 40%).
      • Arvind is good value based on assets compared to the IN Luxury industry average.
      • Arvind is good value based on expected growth next year.
      • Arvind is good value based on earnings compared to the IN Luxury industry average.
      • Arvind is good value based on earnings compared to the India market.
      • NSEI:ARVIND is up 40.2% outperforming the Luxury industry which returned 9.8% over the past month.
      • NSEI:ARVIND is up 40.2% outperforming the market in India which returned 8% over the past month.
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      Cons

      • ARVIND underperformed the Luxury industry which returned -22.1% over the past year.
      • ARVIND underperformed the Market in India which returned -14.5% over the past year.

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