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Dec 19, 2012

Value Shares: Pick of the Week

Arvind Ltd.
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Arvind Ltd.
 
CMP
BSE  
NSE  
Target 102
 
Aravind Ltd. is one of the largest integrated textile player in India. It also runs India's largest value retail chain - Megamart.
 
Last week, the company signed an exclusive distribution deal with Australia-based leading surfwear brand Billabong, which has a $1.5 billion turnover. Arvind already has licensing deals with several global brands like Gant, Arrow, Mossimo and Geoffrey Bene, in addition to a portfolio of its own 12 brands. 

This year, it has acquired the Indian operations of the UK fashion retailers Debenhams, Next and the American lifestyle brand Nautica, this year. It has also a joint venture with Tommy Hilfiger for the latter's operations in India. 

Arvind is targeting Rs 5000 crores of revenues from its brands and retail business in the next 5 years. Within this, Rs 3000 crores are expected to come from organic growth and the rest from acquisitions and joint ventures. 

Arvind has 1.3 million square feet retail space available pan-India to its brands across 730 retail stores in over 150 towns. Arvind Lifestyle Brands also operates in the Middle East and South Africa. 

The company's performance is expected to improve in the second half of the fiscal year largely due to the festive season.