Anand Rathi initiates coverage on Arvind Fashions, target price of Rs 554

Anand Rathi has initiated coverage on Arvind Fashions in the long term with a target price of Rs 554. The stock ended down 3% at Rs 456.40 on Wednesday while the BSE sensex closed 503.62 points down at 38,593.52

Company Financials

For the quarter ended 30-06-2019, the company has reported consolidated sales of Rs 900.94 crore, down -22.93 % from last quarter sales of Rs 1168.96 crore and down -10.52 % from last year same quarter sales of Rs 1006.82 crore. The company has reported net profit after tax of Rs -95.36 crore in the latest quarter.


Investment Rationale

The management is focused on strengthening the balance sheet and cash-flow generation rather than driving revenue growth, said Anand Rathi. In the short term, however, we believe there is pain as the company undergoes re-structuring but post-FY20/21, the company will see a turnaround, said Anand Rathi.