During Thursday’s trading session, the shares of a company operating in the branded apparel, beauty and footwear space, surged 2.1 percent to Rs. 596.25 on BSE, after Goldman Sachs, ICICI Prudential Life Insurance and others bought stakes in the company.
With a market capitalisation of Rs. 7,648.4 crores, at 02:28 pm., the shares of Arvind Fashions Limited were trading in the green at Rs. 585.4, up by nearly 0.3 percent, as against its previous closing price of Rs. 583.95.
What’s the News:
According to the 11th September bulk and block deal data from the NSE and BSE, there were significant transactions happened in Arvind Fashions.
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ICICI Prudential Life Insurance Co. Ltd. and Mahindra Manulife Mutual Fund purchased a combined total of 56.23 lakh equity shares at an average price of Rs. 574.85 per share, amounting to nearly Rs. 323.23 crores.
Additionally, Goldman Sachs Funds, through the Goldman Sachs India Equity Portfolio, purchased 10.06 lakh shares at an average price of Rs. 580.71 per share, totaling Rs. 58.44 crores via an NSE bulk deal.
In another transaction on the BSE, Goldman Sachs Funds bought around 13.11 lakh shares at an average price of Rs. 574.73 per share, worth nearly Rs. 75.35 crores.
On the sellers side, Plenty Private Equity Fund I Limited offloaded 33.87 lakh shares worth Rs. 194.74 crores in Arvind Fashions, while Plenty CI Fund I Limited sold 17.76 lakh shares for Rs. 102.12 crores, both at an average price of Rs. 574.85 on NSE.
On the BSE, Plenty Private Equity Fund I Limited and Plenty CI Fund I Limited sold around 37.55 lakh shares and 17.76 lakh shares, at average prices of Rs. 575 and Rs. 576.1 per share, respectively, collectively bringing the total deal value to nearly Rs. 318.28 crores.
Financials:
The company experienced a significant increase in its revenue from operations, showing a year-on-year rise of around 10.2 percent from Rs. 867 crores in Q1 FY24 to Rs. 955 crores in Q1 FY25.
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Similarly, its net profit increased during the same period from a loss of Rs. 5 crores to a profit of Rs. 14 crores. In FY25, Arvind Fashions aims to achieve double-digit revenue growth with a focus on profitability.
The company plans to maintain a strong focus on cost control and operating leverage to enhance EBITDA and PAT margins. Additionally, it seeks further improvement in Return on Capital Employed (RoCE) and Return on Equity (RoE).
Stock Performance
In the previous six months, the stock has delivered positive returns of nearly 32 percent, as well as around 82.2 percent returns in one year. So far in 2024, the shares of Arvind Fashions have given about 42.4 percent of positive returns.
About the Company:
Arvind Fashions Limited, one of India’s top casual and denim players, is engaged in the business of designing, sourcing, marketing and selling branded readymade apparel, footwear, innerwear and other accessories for men, women and kids.
Written by Shivani Singh
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