India's Arvind Fashions deserves higher valuation - Nuvama

Go Fashion (India)

11/01/2024 06:39

** Branded retailer Arvind Fashions  ARVF.NS  deserves
higher valuation, given portfolio of marquee brands, lean
balance sheet, and ample room for margin expansion- Nuvama
    ** Brokerage calls stock a "long-term" recommendation
    ** Initiates with "buy" and street high TP 660 rupees 
    ** TP represents 39% premium to current price; Median TP at
544 rupees; Stock up 0.8% at 475 rupees on Thursday
    ** Nuvama sees revenue/EBITDA CAGR of 12%/22% (ex-Sephora)
over FY23–26 and EBITDA/PAT CAGR of 22%/91% 
    ** Says U.S. Polo Assn, Tommy Hilfiger, Calvin Klein
generating healthy operating cash flows
    ** ARVF gained 19% in 2023 and is already up 16% so far this
month
    ** ARVF is rated "strong buy" along with peer Go Fashion
 GOFA.NS  - LSEG data



 (Reporting by Sethuraman NR)
 ((Sethuraman.NR@thomsonreuters.com; (+91 9945291420); Reuters
Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))