Archive · 10 Nov 2025
Arvind Ltd. Sees 64% Upside Potential According to Brokerage
A financial analyst has looked at Arvind Ltd., a company that makes clothes and special materials, and thinks its stock price could go up by a lot, about 64%!
They saw that Arvind did okay in the last few months, with some parts of the business doing even better than expected.
The analyst believes things will get even better in the next half of the year because they expect to sell more and get new orders, especially for their advanced materials.
Arvind is also planning to spend money to build bigger factories for both clothes and special materials.
The analyst thinks these investments will help the company make more money over the next few years.
However, there are some things that could make things harder, like if people stop buying as much, or if there are issues with tariffs in the US, or if the cost of materials goes up a lot.
Brokerage maintains 'Buy' rating on Arvind Ltd. with a target price of ₹538, projecting a 64% upside.
Arvind Ltd. reported Q2 FY26 revenue and EBITDA in line with estimates, but PAT exceeded expectations.
The Advanced Material Division (AMD) outperformed, while the textiles business met expectations.
H2 FY26 is anticipated to be stronger due to improved volumes, renegotiated contracts, and new orders in AMD.
The company plans significant investments in its garment and AMD divisions, expecting strong long-term growth and improved margins.
- Who
- Brokerage firm (Arvind Ltd. is the company in focus)
- What
- Projected a 64% upside potential and set a target price of ₹538 for Arvind Ltd., maintaining a 'Buy' rating.
- When
- Based on Q2 FY26 performance review, with projections for FY25-28 and outlook for H2 FY26.
- Where
- Arvind Ltd. operates in textiles and advanced materials, with business influenced by US market, key countries with FTAs, and domestic market.
- Why
- Bullish outlook driven by strong Q2 performance (especially AMD), expected improvement in H2 FY26 due to better volumes and new orders, ongoing investments in garment and AMD divisions, and attractive export opportunities.
Positive Outlook & Growth Drivers
Potential Risks
Financial Performance & Projections
Positive Outlook & Growth Drivers
Brokerage forecasts strong EBITDA and PAT CAGRs (16.7% and 21.9% respectively) for FY25-28, driven by investments in garments and AMD, improved margins, and attractive exports due to FTAs.
Potential Risks
Key risks include a potential demand slowdown, uncertainties related to US tariffs, and significant volatility in input costs which could impact financial performance.
Valuation and Earnings
Positive Outlook & Growth Drivers
Target price raised to ₹538 based on unchanged multiples for textiles and AMD segments, reflecting revised earnings estimates.
Potential Risks
Earnings estimates for FY27E and FY28E were pared down by 3.1% and 2.9% respectively, indicating a cautious adjustment to the current environment despite the overall positive outlook.
- Company
- Arvind Ltd.
- Broker Rating
- Buy
- Target Price
- ₹538
- Current Market Price (CMP)
- ₹329.15
- Projected Upside
- 64%
- Q2 FY26 Revenue
- In line with estimates
- Q2 FY26 EBITDA
- In line with estimates
- Q2 FY26 PAT
- Outperformed estimates