India's Arvind Fashions' Q4 profit jumps two-fold on demand for premium brands

ARVIND FASHIONS

21/05/2024 11:14

BENGALURU, May 21 (Reuters) - Indian retailer Arvind Fashions  ARVF.NS  reported a more than two-fold rise in
fourth-quarter profit on Tuesday, aided by steady demand for premium clothing brands.
    The company, which retails clothing from brands such as Arrow, Calvin Klein and Tommy Hilfiger, reported a consolidated net
profit of 243.2 million rupees ($2.92 million) up from 109.1 million rupees a year ago.
    Its revenue from operations rose nearly 4% to 10.94 billion rupees.
    For further results highlights, click  here 
    
    KEY CONTEXT
    
    Indian retailers have been grappling with slower volume growth amid heightened competition and had to offer heavy discounts to
sway customers, hurting their topline.
    However, demand for premium products aimed at high-income consumers remains a key driver of sales growth.
    Rival Shoppers Stop reported a 53% rise in fourth-quarter profit last month, helped by demand in its beauty and luxury
segments.

    PEER COMPARISON
    
    
                                  Valuation (next 12       Estimates (next 12            Analysts' sentiment               
                                       months)                  months)                                              
                         RIC         PE       EV/EBITD  Revenue growth   Profit    Mean       # of       Stock to    Div yield (%)
                                                 A                       growth   rating*   analysts      price      
                                                                                                         target**    
   Arvind Fashions     ARVF.NS      40.62      11.38        12.45        113.01   Strong       5           0.82          0.21
                                                                                    Buy                              
   Shoppers Stop       SHOP.NS      56.50      12.03        23.49        66.55     Hold        7           0.92           --
       Trent           TREN.NS     106.38      59.37        37.66        57.76      Buy        13          1.13          0.07
    Aditya Birla       ADIA.NS       --        18.49        15.81          --      Hold        17          1.12           --
 Fashion and Retail                                                                                                  
 
* Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT
    
    JANUARY-MARCH STOCK PERFORMANCE

   

    -- All data from LSEG
    -- $1 = 83.2892 Indian rupees

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January-March stock performance_Arvind Fashions    https://tmsnrt.rs/3Kdz7oV
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 (Reporting by Ashna Teresa Britto in Bengaluru; Editing by Eileen Soreng)
 ((AshnaTeresa.Britto@thomsonreuters.com;))