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Arvind rallies 5%, hits 52-week high in subdued market on improved outlook

Arvind expects garment volumes to start improving in the second half of the year despite the soft economic outlook globally as customers become comfortable with the economic outlook and resume buying

garment exports

SI Reporter Mumbai

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Shares of Arvind rallied 5 per cent to hit a 52-week high of Rs 138.40 on the BSE in Thursday’s subdued intra-day trade on the back of an improved business outlook.

The stock of the garments & apparels company surpassed its previous high of Rs 134.55, touched on June 14, 2023. In comparison, the S&P BSE Sensex was down 0.20 per cent at 63,393, at 01:26 pm. In the past three months, the stock has zoomed 63 per cent as compared to a 9 per cent rise in the benchmark index.

Arvind expects garment volumes to start improving in the second half of the year despite the soft economic outlook globally as customers become more comfortable with the economic outlook and resume some of their key buying programs. Margins can also see some improvement in tandem with the volume growth.

“More and more people want to de-risk China, Vietnam and Bangladesh, which are the 2 major beneficiaries of this change are fairly saturated to the extent that buyers don't want to place too much more eggs in those two baskets. Therefore, India is very well-positioned for the medium term as a sourcing destination for many of key brand partners,” Arvind said in its Q4FY23 earnings conference call.

In the financial year 2023-24 (FY24), the management expects the overall revenue growth to be in a modest single digit and most of this will be powered by Advanced Materials Division (AMD), which they believe will deliver another year of robust 20 per cent growth.

During FY24, the company intends to pay back another Rs 250 crore of long-term debt and get the long-term debt level to about Rs 400 crore by end of March 2024.

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First Published: Jun 22 2023 | 1:56 PM IST

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