Aarvee Denims & Exports Ltd. (AARVEEDEN) AI Stock Analysis

• Market Cap: ₹3.19B
• Dividend Yield: N/A
• Average Volume (3M): 6.31K
• Price to Earnings (P/E): 18.1
• Beta (1Y): 0.03
• Revenue Growth: -48.16%
• EPS Growth: -1.10%
• Country: IN
• Employees: 228
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Manufacturing - Textiles
• EPS (TTM): 4.35
• Shares Outstanding: 25,764,340
• 10 Day Avg. Volume: 5,433
• 30 Day Avg. Volume: 6,306
• PEG Ratio: -0.13
• Price to Book (P/B): 9.19
• Price to Sales (P/S): 7.74
• P/FCF Ratio: 11.96
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: ₹125.00 ▼(-18.70% Downside)

The overall stock score of 53 reflects significant financial challenges, particularly with profitability and revenue decline, which weigh heavily on the score. Technical analysis provides a slightly positive outlook with moderate bullish momentum. The valuation indicates the stock is moderately priced, but the lack of dividend yield limits income potential for investors.

Positive Factors

Liability Reduction and Return to Profit

Observed reduction in total liabilities alongside a latest-year positive net income signals early balance-sheet repair. This durable trend lowers solvency risk, reduces interest burden, and creates room for strategic reinvestment or further deleveraging over coming months.

Integrated Denim Manufacturing & Exports

Aarvee's integrated denim manufacturing and export orientation gives a structural business advantage: steady B2B demand from garment makers and exposure to multiple markets. This supports revenue diversification and long-term customer relationships as apparel demand normalizes.

Improving Cash Generation

Recent improvement in operating cash flow and positive free cash flow provide a durable liquidity cushion. Over the next 2–6 months this supports working-capital needs, selective capex, and debt reduction efforts, increasing resilience against textile cycle volatility.

Negative Factors

Negative Gross Margins Historically

Sustained negative gross margins indicate structural issues in core operations—pricing, cost structure, or product mix. Until gross-profit drivers are corrected, efforts on SG&A or financing cannot restore sustainable profitability, keeping recovery fragile over months.

High Financial Leverage

Significant leverage materially constrains financial flexibility in a cyclical textile business. High debt-to-equity increases refinancing, interest-service, and insolvency risks, limiting the company's ability to invest in productivity or withstand raw-material and demand shocks.

Sharp Revenue Decline

A nearly 48% revenue decline is a material structural risk: loss of scale weakens fixed-cost absorption, bargaining power with suppliers and customers, and long-term margin potential. Sustained top-line contraction undermines recovery prospects and cash-generation capacity.

Aarvee Denims & Exports Ltd. Business Overview & Revenue Model

Company Description

Varvee Global Ltd. engages in the manufacture and sale of denim and non-denim Fabrics. It operates through Textile and Windmill segments. The company was founded on March 28, 1988, and is headquartered in Ahmedabad, India.

How the Company Makes Money

Aarvee Denims & Exports Ltd. generates revenue primarily through the production and sale of denim fabric and finished garments. The company has established multiple revenue streams, including direct sales to apparel manufacturers, export sales to international markets, and collaborations with fashion brands for custom denim solutions. Additionally, AARVEEDEN benefits from strategic partnerships with textile distributors and retailers, enabling it to expand its market reach. The company also leverages economies of scale in its manufacturing processes, which helps to reduce costs and increase profit margins, contributing significantly to its overall earnings.

Aarvee Denims & Exports Ltd. Financial Statement Overview

Summary

Aarvee Denims & Exports Ltd. faces significant financial challenges, particularly with profitability and revenue decline. The balance sheet is heavily leveraged, increasing financial risk, although recent improvements in net income and free cash flow provide some positive outlook.

Income Statement

The income statement reflects significant challenges with declining revenues and negative profitability. Gross profit margin has been negative in recent years, indicating cost management issues or pricing pressures. The net profit margin is also negative, although there has been an improvement in the latest year with a positive net income. Revenue has dramatically declined from 2020 to 2025, impacting overall financial health.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, suggesting significant leverage which poses financial risk. However, there has been a reduction in total liabilities over the years. The equity ratio is weak, reflecting limited shareholder equity relative to total assets, and return on equity has been negative due to past net losses, although the latest year shows a positive net income.

Cash Flow

The cash flow statement indicates improving operational cash flows, with a positive free cash flow in recent periods. However, cash flow from financing activities has been negative, reflecting debt repayments or financial restructuring. The operating cash flow to net income ratio is favorable in recent periods, indicating efficient cash generation relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	283.70M	424.53M	844.14M	2.59B	4.10B	2.63B
Gross Profit	-400.36M	-438.63M	31.91M	654.36M	1.26B	602.27M
EBITDA	215.46M	500.05M	-246.05M	-254.90M	-82.00M	-118.40M
Net Income	214.40M	185.44M	-446.16M	-650.49M	-414.23M	-641.91M
Balance Sheet
Total Assets	0.00	2.04B	4.38B	5.28B	6.29B	7.11B
Cash, Cash Equivalents and Short-Term Investments	148.92M	154.08M	22.21M	1.60M	98.65M	134.27M
Total Debt	0.00	942.59M	2.78B	3.97B	4.13B	4.33B
Total Liabilities	-357.42M	1.69B	4.21B	4.66B	5.02B	5.43B
Stockholders Equity	357.42M	357.42M	171.98M	614.02M	1.26B	1.68B
Cash Flow
Free Cash Flow	0.00	274.72M	1.10B	396.46M	103.82M	451.58M
Operating Cash Flow	0.00	274.72M	1.10B	396.46M	125.21M	454.12M
Investing Cash Flow	0.00	1.82B	456.63M	129.28M	467.12M	88.40M
Financing Cash Flow	0.00	-1.96B	-1.56B	-622.79M	-627.96M	-418.77M

Aarvee Denims & Exports Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 153.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AARVEEDEN, the sentiment is Positive. The current price of 153.75 is above the 20-day moving average (MA) of 133.91, above the 50-day MA of 142.41, and above the 200-day MA of 151.71, indicating a neutral trend. The MACD of -4.61 indicates Negative momentum. The RSI at 50.83 is Neutral, neither overbought nor oversold. The STOCH value of 43.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:AARVEEDEN.

Aarvee Denims & Exports Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
NDL	61 Neutral	₹3.94B	11.54	―	―	45.69%	-26.26%
DONEAR	59 Neutral	₹4.55B	13.50	―	0.21%	9.35%	-20.51%
AARVEEDEN	53 Neutral	₹3.19B	18.13	―	―	-48.16%	-1.10%
SOMATEX	50 Neutral	₹3.66B	128.60	―	―	-19.83%	-96.76%
INDTERRAIN	48 Neutral	₹1.72B	-12.96	―	―	-5.67%	71.26%