Arvind Fashions - On The Verge Of A Turnaround: Anand Rathi
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Anand Rathi Report
With major headwinds for Arvind Fashions Ltd. now past, we expect a revival in growth and better margins in its key power brands. These account for 80% plus of its revenue and almost all its Ebitda. Hence, brighter prospects make us upbeat on the company.
Ahead, Arvind Fashions will concentrate on its six focus brands, optimise working capital via better inventory turns, and expand its network through franchisees.
We expect more cash generation and better return ratios, and debt to shrink. Revenue would be 3.5% more each year (FY22- 24) due to good revenue recovery. FY22E/FY23E/FY24E Ebitda are 7/18/ 7% higher, driven by sales growth and the higher power-brand margins.
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