Arvind Fashions - Cleanup Phase Over; Focus On Profitable Growth: Motilal Oswal

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..Motilal Oswal Report.Arvind Fashion Ltd. has seen a tumultuous phase since its listing around three years ago at ~Rs 460 and is now down 40%. The last two years have been particularly challenging due to Covid-19. This has triggered four rounds of equity raise, including the Flipkart backing, which has reduced its leverage. The business has become much leaner, in addition to the company's decision to cast aside the long tail of loss-making brands and sell the value retail chain 'Unlimited'. We see a change in the management philosophy from 'chasing growth to 'chasing profitable growth'. Arvind Fashions now focuses on six key brands (contributing ~70% to revenue) – USPA, Arrow, Tommy Hilfiger, and Flying Machine among the power brands and CK and Sephora under emerging brands (~10% revenue) – with a revenue scale of Rs 30 billion in the pre-Covid base and the ability to do high-single digit to low-double-digit margins. .Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Arvind Fashions - Cleanup Phase Over; Focus On Profitable Growth: Motilal Oswal

Arvind Fashions - Cleanup Phase Over; Focus On Profitable Growth: Motilal Oswal

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