Arvind Limited
Arvind Limited Fundamental Analysis
Arvind Limited (ARVIND.NS) shows weak financial fundamentals with a PE ratio of 30.50, profit margin of 4.45%, and ROE of 10.66%. The company generates $93.1B in annual revenue with moderate year-over-year growth of 7.24%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 53.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ARVIND.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakARVIND.NS struggles to generate sufficient returns from assets.
Valuation Score
ModerateARVIND.NS shows balanced valuation metrics.
Growth Score
ModerateARVIND.NS shows steady but slowing expansion.
Financial Health Score
ExcellentARVIND.NS maintains a strong and stable balance sheet.
Profitability Score
WeakARVIND.NS struggles to sustain strong margins.
Key Financial Metrics
Is ARVIND.NS Expensive or Cheap?
P/E Ratio
ARVIND.NS trades at 30.50 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ARVIND.NS's PEG of 1.80 indicates fair valuation.
Price to Book
The market values Arvind Limited at 3.12 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 10.73 times EBITDA. This signals the market has high growth expectations.
How Well Does ARVIND.NS Make Money?
Net Profit Margin
For every $100 in sales, Arvind Limited keeps $4.45 as profit after all expenses.
Operating Margin
Core operations generate 7.68 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.66 in profit for every $100 of shareholder equity.
ROA
Arvind Limited generates $4.68 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Arvind Limited generates limited operating cash flow of $4.36B, signaling weaker underlying cash strength.
Free Cash Flow
Arvind Limited generates weak or negative free cash flow of $1.88B, restricting financial flexibility.
FCF Per Share
Each share generates $7.19 in free cash annually.
FCF Yield
ARVIND.NS converts 1.49% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
30.50
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.80
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.12
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.36
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.41
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.14
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How ARVIND.NS Stacks Against Its Sector Peers
| Metric | ARVIND.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 30.50 | 24.23 | Worse (Expensive) |
| ROE | 10.66% | 1184.00% | Weak |
| Net Margin | 4.45% | 2620.00% | Weak |
| Debt/Equity | 0.41 | 0.70 | Strong (Low Leverage) |
| Current Ratio | 1.14 | 2.83 | Neutral |
| ROA | 4.68% | -32411.00% (disorted) | Weak |
ARVIND.NS outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Arvind Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
11.79%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
265.45%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
-12.33%
Industry Style: Cyclical, Growth, Discretionary
Declining