Sunday, May 22, 2011

UPDATE ON ARVIND LTD:MY FANCY SHARE

1. when Arvind Ltd is traded @12 only then I recommended it on this blog..read this old story for reference in this link
2. so today we give you some update for Arvind Ltd which is still a hold for me..this textile firm Arvind will merge group company Arvind Products with itself, a move that is likely to help save Arvind Ltd much as Rs 10 crore in costs annually from FY12,
3.Shareholders of Arvind Products, in which Arvind holds 54%, will get one share of the latter for every 11 held, and as you calculate that promoters holding in Arvind Ltd are automatic increase with this merger it is continue rising promoters holding and I always like it
Four this merger help Arvind Ltd because "Both are textile businesses and Arvind Ltd have the lot of inter-linkages regarding supply and raw material. So every time they supply they end up paying taxes in terms of sales, VAT, excise duty. So, we expect this merger leading to savings in costs," 
3.The Arvind Ltd consolidated net profit more than tripled in the March quarter to Rs 63 crore on strong volumes and better realizations. Its revenues grew 59% to Rs 1,200 crore.
For the full year, net profit more than tripled to Rs 165 crore as sales grew by nearly a quarter.
4.Arvind Ltd top management expects the firm's top line to grow at 20% in FY12.
5. Arvind Ltd  has also diversified into real estate, said it was on track for "unlocking value of its land bank." It is looking to liquidate Rs 800-900 crore worth of land over the next three years.
Earlier this month, it formed a joint venture with Tata Housing to develop a township with projected revenue of Rs 2,000 crore.
The company expects to earn about Rs 200 crore from its real estate business in FY12, 
6. Remember Arvind Ltd have total 25.44 cr. Shares and 200 crore earnings mean EPS of 7 by real estate and if we calculate EPS of 8 from the textile business then total EPS 15 and if we discount it from P/E multiple ten then price of Arvind Ltd stock is 150, so I think over 150 is the target for 1 to 3 year.
7. Arvind Ltd is my fancy stock, and I hold this share so my personal interest is there so please remember this article may be a forward-looking statement of my views.

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