Close price : 34.05 ( 04-Sep-2009)
Recommendation : BUY
| Market Cap | 772.29 | | | * EPS (TTM) | - | | | * P/E | - | | | * P/C | 9.83 |
| * Book Value | 59.62 | | | * Price/Book | 0.57 | | | Div(%) | 0.00 | | | Div Yield(%) | - |
| Market Lot | 1.00 | | | Face Value | 10.00 | | | Industry P/E | 10.34 |
INVESTMENT can be considered in the Arvind stock for 2 years. After a line of disappointing quarterly results in the year 2008, the company's performance during the APR - JUNE quarter 2009 rebounded on the back of a reduction in interest costs and improved realisations across segments.
The book value of the company stands at Rs.59.62, this will give much hope that the stock can climb atleast upto Rs 60/- in the long term.
As Arvind already enjoys a strong market share for its fabric, it should be able to leverage its relationship with importers and gain customers for its garments as well.
While the garments business will pose its own set of challenges in terms of providing flexibility in operations and dealing with labour productivity issues, an increasing contribution to revenues from the garments business, which is less capital-intensive and margins-accretive, would augur well for earnings growth.
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