Edit this postWhy Is Elara Capital Bullish on Arvind for FY25–28?
About Arvind Limited
Arvind Limited, a diversified textile and apparel manufacturer, continues to strengthen its Advanced Material Division (AMD) segment, which has emerged as a key growth driver. The company benefits from robust export demand, renegotiated vendor contracts, and improved pricing in technical textiles.
Elara Capital View
Recommendation: BUY
Target Price: ₹538 | CMP: ₹329.15
Elara Capital maintains a bullish stance on Arvind, highlighting strong execution and steady performance in the AMD segment. The brokerage expects a 3.1% earnings growth for FY27E and 2.9% for FY28E.
Free cash flow of ₹960 crore is expected during FY25–28, with an EBITDA CAGR of 16.7% and PAT CAGR of 21.9%.
Brokerage Highlights
- ✅ AMD segment showing stronger order inflows and global expansion.
- ✅ Improved ROCE through exports and free trade agreements (FTA) with key markets.
- ✅ Lower interest cost and higher income boosted PAT above expectations.
- ⚠️ Textile division remains stable but growth is slower than AMD.
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Valuation Metrics
| Metric | FY28E | Comment |
|---|---|---|
| EBITDA Margin | ~16.7% | Driven by AMD growth |
| PAT CAGR | 21.9% | Healthy profit momentum |
| Free Cash Flow | ₹960 Cr (FY25–28) | Supports deleveraging |
Valuation & Investment View
- Short-term: Accumulate on dips.
- Medium-term: Target ₹538 on improved margin visibility.
- Long-term: Positive; AMD remains key growth driver.
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Investor Takeaway
Indian-Share-Tips.com observes Arvind’s trajectory toward margin and profit expansion. The AMD-led growth cycle positions the company for a stable uptrend into FY27–28. Explore in-depth stock guidance at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
