Arvind Ltd.
ISIN: INE034A01011 • Market Cap: ₹14,096 Cr
The 5-Pillar Quality Audit for Arvind Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (10.9%), Return on Capital Employed (15.5%), and equity compounding (9.3%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.36 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (5.3%) and 3Y PAT CAGR (1.5%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 34.04 vs PEG of 2.40 and Dividend Yield of 0.9%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 39.5%, backed by 36.3% institutional ownership.
Key Fundamental Strengths
Deep Institutional Sponsorship (36.3%)
Mutual funds, domestic DIIs, and foreign FIIs hold 36.3%, providing strong governance scrutiny.
Consistent Market Standing (Mid Cap)
Established player in the Textiles sector with an overall fundamental quality score of 64/100.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Textiles)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Textiles space.
Quantitative Strategy Eligibility
Checking ARVIND against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 64/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Textiles Sector Peer Comparison
Compare ARVIND directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Arvind Ltd. (ARVIND)Current | 64/100 | ₹14,096 Cr | 34.04 | 15.5% | 0.36 | — |
| Page Industries Ltd. (PAGEIND) | 77/100 | ₹39,485 Cr | 52.24 | 63.8% | 0.01 | View |
| K.P.R. Mill Ltd. (KPRMILL) | 67/100 | ₹38,367 Cr | 42.05 | 20.2% | 0.10 | View |
| Vardhman Textiles Ltd. (VTL) | 63/100 | ₹17,217 Cr | 20.30 | 10.8% | 0.13 | View |
| Welspun Living Ltd. (WELSPUNLIV) | 67/100 | ₹17,124 Cr | 61.68 | 15.4% | 0.51 | View |
| Trident Ltd. (TRIDENT) | 59/100 | ₹12,531 Cr | 31.70 | 10.6% | 0.37 | View |
Frequently Asked Questions: Arvind Ltd.
Q:What is the 5-Pillar Fundamental Score for Arvind Ltd. (ARVIND)?
Arvind Ltd. has a RupeeTools Fundamental Score of 64/100, placing it in the 'Moderate / Average' category. Its pillar scores are: Profitability (57/100), Financial Health (78/100), Growth (48/100), Valuation (63/100), and Ownership Quality (78/100).
Q:Is ARVIND fundamentally strong for long-term investment?
ARVIND currently holds a moderate quality rating of 64/100. While it operates in the Textiles sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does ARVIND pass the Coffee Can Investing filter?
Yes! ARVIND satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does ARVIND compare against other Textiles peers?
Within India's Textiles sector, ARVIND trades at a P/E of 34.04 and generates an ROCE of 15.5%. Compare its 5-Pillar score of 64/100 against top sector peers like Page Industries Ltd. (77/100), K.P.R. Mill Ltd. (67/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.