Arvind Fashions Ltd. Stock price has broken out of a 52 week high above 191 and now seems to be consolidating.
Fundamentally anyone considering investment should go through latest annual report. Lots of information about debt reduction, cost reduction, levers of growth etc.
Company has got strong brands in the form of US Polo, Tommy Hilfiger, Calvin Klein, Flying Machine and ladies beauty brand Sephora. These are the focus brands for the company. Company has shut down non performing stores, recently sold off Unlimited brand to V Mart, re negotiated rentals in the wake of pandemic, undergone two rights issues, and induced fund infusion from Flipkart for minority stake into Arvind Youth brands which is a subsidiary which owns Flying Machine brand.
It seems balance sheet clean up, cost control measures etc are now firmly in place. If these start playing out with improving sales and margins, this could be an interesting bet.
disc: invested as a techno funda bet. Idea here would be to scale up allocations as the fundamentals improve. As of now a starter position.