BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Direct Report
Arvind Fashions Ltd.’s strategy of focusing on its core profitable brands and strengthening the balance sheet is expected to aid profitable growth while maintaining leverage at reasonable levels.
According to the management, the latest capital raising (Rs 439 crore) from 17 marquee investors and promoters is the final leg of its restructuring phase.
Arvind Fashions' management has indicated that this preferential allotment would enable it to significantly deleverage its balance sheet and adequately fund its future growth aspirations.
We believe that restructuring of brand portfolio and balance sheet are steps in the right direction.
We expect profitable growth with prudent capital allocation to result in debt/Ebitda ratio (pre-Indian-Accounting Standard) declining to 2.5 times by FY23E.
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