Textile Giant: Arvind Limited 4400% returns

 

In this article we will discuss about textile giant which is well known name in whole Industry company name is Arvind Limited.

Arvind Limited: Overview and Business Highlights

Arvind Limited is a leading vertically integrated textile company in India with over eight decades of industry presence. As one of the largest denim manufacturers globally, it also produces a variety of cotton shirting, denim, knits, and bottom-weight fabrics, along with jeans and shirt garments.

Key Business Segments

1.       Textiles (84% of Revenue):
Arvind’s vertically integrated operations span from cotton yarn manufacturing to fabric processing and garment production, providing strong operational flexibility. Revenue contributions in Q3FY24 include Denim (18.5%), Woven Fabrics (46%), Garments (27%), and Others (8.5%).

2.       Advanced Materials (12% of Revenue):
This segment focuses on technical textiles for human protection, filtration, automotive, and construction applications. Products include fire-retardant and abrasion-resistant suits, contributing to 53.5% from Human Protection, 21% from Industrials, and 25.5% from Composites in 9MFY24.

Global Reach and Diversification
Arvind earns 51% of its revenue from exports to key markets like the USA, UK, and EU, with the rest from India. Additionally, the company is involved in water treatment, agriculture, and e-commerce.

Strategic Initiatives
Arvind is focused on reducing its debt, which declined from ₹2,951 crore in FY20 to ₹1,421 crore in September 2023. It is undertaking capacity expansion projects under the PLI scheme and leveraging land monetization initiatives like the "Arvind Forreste" project near Ahmedabad to further improve its financial position.

These efforts, coupled with advanced manufacturing capabilities and innovation, position Arvind Limited as a key player in the global textile industry.

Company financials:-

You can see from below that company profitability has been increased from Rs.723 crores in 2019 to 829 crores and company has stable operating margin. Company is now getting benefits from Bangladesh Turmoil as most of textile business of Bangladesh is now getting shifted to India.

	Mar-19	Mar-20	Mar-21	Mar-22	Mar-23	Mar-24	TTM
Sales +	7,142	7,369	5,073	8,010	8,382	7,738	7,982
Operating Profit	723	708	478	830	828	879	829
OPM %	10%	10%	9%	10%	10%	11%	10%

Stock Performance:-

Company stock has performed very well company stock was trading at Rs.8.77 per share in 2002 and now it is trading at Rs.398 per share on 16.01.2025 giving returns of 4437%. This means that if you have invested Rs.1 Lakh into the stock it has already converted your investment into Rs.44.37 lakh. The said returns are without considering dividend.

Now let’s see how much dividend this company has given over the period of time:-

Announcement Date	Ex-Dividend Date	Dividend Type	Dividend (Rs)
06-May-24	19-Jul-24	Final	3.75
07-May-24	19-Jul-24	Special	1
18-May-23	21-Jul-23	Final	3.75
19-May-23	21-Jul-23	Special	2
17-May-19	29-Jul-19	Final	2
09-May-18	21-Aug-18	Final	2.4
22-May-17	27-Jul-17	Final	2.4
13-May-16	28-Jul-16	Final	2.4
14-May-15	30-Jul-15	Final	2.55
15-May-14	24-Jul-14	Final	2.35
16-May-13	18-Jul-13	Final	1.65
09-May-12	13-Sep-12	Final	1
27-Apr-06	14-Sep-06	Final	1
27-Apr-05	19-Sep-05	Final	1
09-May-18	21-Aug-18	Final	2.4
22-May-17	27-Jul-17	Final	2.4
13-May-16	28-Jul-16	Final	2.4
14-May-15	30-Jul-15	Final	2.55
15-May-14	24-Jul-14	Final	2.35
09-May-18	21-Aug-18	Final	2.4
22-May-17	27-Jul-17	Final	2.4
13-May-16	28-Jul-16	Final	2.4
14-May-15	30-Jul-15	Final	2.55
15-May-14	24-Jul-14	Final	2.35
16-May-13	18-Jul-13	Final	1.65
09-May-12	13-Sep-12	Final	1
27-Apr-06	14-Sep-06	Final	1
27-Apr-05	19-Sep-05	Final	1
		Total	58.1

 

You can see that company has given dividend of Rs.58.1 per share since year 2007 this means at an investment of Rs.8.77 per share it has given returns of 662% on investment i.e. Rs. 6.62 lakh dividend against investment of Rs. 1 Lakh.