1 ARVIND share price target reports by brokerages below. See what is analyst's view on ARVIND share price forecast, rating, estimates, valuation and prediction behind the target. You may use these research report forecasts for long-term to medium term for your investment or trades in 2020.
COVID-19 has an extensive impact on the textile sector with lower volumes, tepid demand and disrupted supply chain. However, the management is confident that the sector will turn around by Q2FY21 with plants already ramping up to Capacity utilization of 45-50%. Hence, we have revised our estimates and expect the company to report sales of Rs. 8,339 Cr in FY22 with PAT & EPS of Rs. 250.9 Cr and Rs 9.7. We have assigned a PE of 5.5X and have arrived with a target price of Rs. 53 (+~61%) within an investment horizon of 16-20 months.
We have reduced our earnings estimates for FY2020 and FY2021 to factor in subdued performance in Q1FY2020. New garmenting plants are operating at a sub-optimal level and will take some time to scale up.Once the plants start operating at optimum utilisation, profitability of the textile business will improve. The stock has corrected by ~32% in the past three months. We maintain our Hold recommendation on the stock with a revised price target (PT) of Rs. 66.
We have downgraded our earnings’ estimates factoring in delay in ramp-up in garment business, challenges in denim exports, lower margin in projects business and increased interest expenses due to higher debt. The stock is presently trading at FY20E/21E PE of 6.7x/4.9x and EV/EBITDA of 5.3x/4.8x respectively. We maintain BUY recommendation on the stock with revised target price of Rs 75 (Vs Rs 103 earlier), valuing the stock at FY21E EV/EBITDA of 5.5x (vs 6x), factoring in increased challenges in the business.
Factoring in this, we are trimming FY20/21E EBITDA by 4% each with a revised TP of INR98 (from INR104), rolling forward the valuation to September 2020E (6x EV/EBITDA). Despite the near term growth concerns, growth prospects (for garment and AM segments) remain among the highest in the sector. Maintain ‘BUY’.
We have marginally reduced ourearnings estimates for FY2020 to factor in lower volumes in the textile business but broadly maintain the estimates for FY2021. Revenue and PAT are expected to clock aCAGR of 8% each over FY2019-21. We maintainour Hold recommendation on the stock with an unchanged price target (PT) of Rs. 95. Anysignificant improvement in margins from currentlevels would be a key re-rating trigger for the stock.
We downgraded our revenue and margins estimates factoring in challenging business environment in denim business and delay in ramp-up in garment business. The stock is presently trading at FY20E/21E PE of 8.0x/6.7x and EV/EBITDA of 5.9x/5.5x, respectively. We maintain BUY recommendation on the stock with revised target price of Rs 103 (Vs Rs 110 earlier), valuing the stock at FY21E EV/EBITDA of 6x, as we roll forward our valuations to FY21E.
We believe that EIL stock is trading at cheap valuation at PER 13.6x FY20 core earnings. We value core FY20 earnings at PER 20x and maintain BUY with unchanged target price of Rs 155.
SOURCE: Data from D'Market via Quandl. Intraday data delayed 15 minutes.
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