Arvind Fashions Ltd. (ARVINDFASN) AI Stock Analysis

• Market Cap: ₹58.76B
• Dividend Yield: 0.31%
• Average Volume (3M): 10.85K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.21
• Revenue Growth: 10.72%
• EPS Growth: -115.52%
• Country: IN
• Employees: 1,244
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 2.50
• Shares Outstanding: 133,630,190
• 10 Day Avg. Volume: 8,854
• 30 Day Avg. Volume: 10,853
• PEG Ratio: 1.06
• Price to Book (P/B): 5.59
• Price to Sales (P/S): 1.16
• P/FCF Ratio: 12.34
• 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: ₹660.00
• Price Target Upside: 30.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 15.83
• Revenue Forecast (FY): ₹52.53B

• Rating: 56 Neutral
• Price Target: ₹444.00 ▼(-12.55% Downside)
• Action: Reiterated Date: 12/03/25
• Date: Action: Reiterated 12/03/25

Arvind Fashions Ltd. demonstrates strong operational efficiency and cash flow management, which are significant strengths. However, the stock faces challenges with profitability and valuation, as indicated by a negative P/E ratio and low dividend yield. The technical analysis suggests a bearish trend, further impacting the overall score.

Positive Factors

Free Cash Flow Strength

Consistent free cash flow growth and a strong operating cash flow to net income ratio indicate the company can fund working capital and reinvest in stores and digital initiatives without heavy external financing. This durability supports capex-light expansion, working-capital resilience, and optionality for deleveraging or strategic investments over the next several quarters.

Sustained Revenue Growth

Mid-teens revenue growth shows the business is expanding scale across channels. Steady top-line growth supports better fixed-cost absorption and inventory throughput, improving the odds that operating improvements translate into lasting margin gains and stronger cash generation over a 2-6 month horizon.

Improving Operating Margins

Notable improvement in EBIT/EBITDA margins points to effective cost controls, sourcing, and store/digital productivity. Higher operating efficiency is durable if maintained, allowing the company to better withstand cyclical retail pressures and convert revenue into predictable operating cash flow even before net profitability fully recovers.

Negative Factors

Negative Net Income

A reported net loss undermines retained earnings and limits the firm's ability to self-fund growth or return capital. Until margins convert to net profitability, the company remains dependent on operating cash flow or external financing for strategic initiatives, increasing execution risk over the medium term.

Elevated Leverage

Sustained higher leverage raises refinancing and interest-cost risk, particularly in a cyclical retail environment. If revenue growth slows or working capital needs spike seasonally, debt service obligations could constrain capital allocation and limit flexibility for marketing, store investment, or inventory strategies over coming quarters.

Volatile Earnings (EPS Decline)

An extreme EPS decline signals earnings volatility and weak net-profit conversion. Persistent swings in EPS hinder long-term planning, make it harder to signal sustainable profitability to stakeholders, and may restrict strategic moves that require steady internal cash generation or predictable earnings performance.

Arvind Fashions Ltd. Business Overview & Revenue Model

Company Description

Arvind Fashions Limited engages in retailing readymade garment, cosmetics, and accessories in India. The company also offers beauty and footwear products. It provides a portfolio of owned and licensed brands, such as US Polo, Arrow, Flying Machine, Tommy Hilfiger, Calvin Klein, Unlimited, Sephora, and others. The company sells its menswear, womenswear, and kids wear products through retail and departmental stores, as well as online. It also operates UNLIMITED, the apparel value retails stores; and exports its products to Nepal, Sri Lanka, and the Middle East. The company was formerly known as Arvind J&M Limited. Arvind Fashions Limited was incorporated in 2016 and is based in Bengaluru, India.

How the Company Makes Money

Arvind Fashions Ltd. generates revenue primarily through the sale of its branded apparel and accessories. The company operates on a multi-channel retail model, encompassing exclusive brand outlets, multi-brand retail, and e-commerce platforms, which broadens its market reach. Key revenue streams include direct sales from its owned brands, franchise operations, and licensing agreements with international brands, allowing it to earn royalties. Additionally, strategic partnerships with other fashion and retail companies enhance its product offerings and distribution capabilities, contributing significantly to its overall earnings.

Arvind Fashions Ltd. Financial Statement Overview

Summary

Arvind Fashions Ltd. shows strong improvements in operational efficiency and cash flow management, despite challenges in profitability as evidenced by a negative net income in 2025. The balance sheet indicates moderate leverage with a need for further improvement to mitigate potential risks.

Income Statement

Arvind Fashions Ltd. shows an improving trajectory in revenue growth, with revenue increasing from 2024 to 2025. However, the company reported a negative net income in 2025, which impacts the net profit margin negatively. Despite this, the EBIT and EBITDA margins have improved significantly, indicating better operational efficiency.

Balance Sheet

The company's balance sheet reflects a moderate debt-to-equity ratio, which has slightly improved over the years. Stockholders' equity has shown some growth, contributing to a better equity ratio. However, the overall leverage is still relatively high, posing a potential risk if revenue growth does not sustain.

Cash Flow

Arvind Fashions Ltd. has demonstrated strong cash flow management, with significant growth in free cash flow in recent years. The operating cash flow to net income ratio is favorable, indicating good cash generation relative to reported earnings. The company has also managed to keep capital expenditures in check, supporting free cash flow growth.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	47.72B	46.20B	42.52B	40.64B	30.52B	19.10B
Gross Profit	25.61B	24.70B	20.36B	18.17B	12.03B	7.09B
EBITDA	6.49B	6.02B	5.33B	4.88B	2.58B	643.20M
Net Income	-243.20M	-355.70M	806.40M	367.10M	-2.67B	-5.80B
Balance Sheet
Total Assets	0.00	38.09B	36.07B	36.72B	32.63B	37.01B
Cash, Cash Equivalents and Short-Term Investments	1.65B	1.52B	1.53B	1.79B	866.70M	80.10M
Total Debt	0.00	11.57B	11.48B	12.65B	11.03B	18.98B
Total Liabilities	-11.64B	26.45B	24.15B	25.80B	24.12B	31.10B
Stockholders Equity	11.64B	9.57B	10.03B	9.10B	7.50B	5.22B
Cash Flow
Free Cash Flow	0.00	4.34B	3.52B	2.54B	2.91B	-1.24B
Operating Cash Flow	0.00	5.30B	4.34B	3.17B	3.00B	-789.50M
Investing Cash Flow	0.00	-752.20M	318.70M	-284.90M	-85.10M	-395.00M
Financing Cash Flow	0.00	-4.56B	-4.91B	-1.98B	-2.09B	1.13B

Arvind Fashions Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 507.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ARVINDFASN, the sentiment is Negative. The current price of 507.7 is above the 20-day moving average (MA) of 470.88, above the 50-day MA of 476.67, and above the 200-day MA of 496.50, indicating a bearish trend. The MACD of -10.12 indicates Positive momentum. The RSI at 36.21 is Neutral, neither overbought nor oversold. The STOCH value of 15.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ARVINDFASN.

Arvind Fashions Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JAICORPLTD	70 Outperform	₹18.42B	10.72	―	4.22%	―	―
KKCL	66 Neutral	₹29.96B	21.48	―	0.41%	28.67%	-20.77%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ARVINDFASN	56 Neutral	₹58.76B	-331.37	―	0.31%	10.72%	-115.52%
ABFRL	48 Neutral	₹80.21B	-12.43	―	―	-32.83%	31.19%
INDTERRAIN	48 Neutral	₹1.55B	-21.85	―	―	-5.67%	71.26%