Arvind Ltd traded with heavy volumes during Wednesday’s trading session even as it managed to record gains of 4.62 per cent on a closing basis when Sensex corrected by more than 300 points.
The stock made a fresh 52-week high for itself at Rs 84.50 per share on Wednesday. It is up by over 11 per cent in one-month period and over 157 per cent in a one-year period. On BSE, there was a spurt in volumes by more than 3.77 times.
Investors are expecting a strong recovery in FY22 & beyond in the company, driven by a recovery in the B2C retail industry in the domestic market as the economy is finally opening up. Arvind Ltd is also expected to benefit from sustained growth in AMD space and improving demand in export markets. Arvind Ltd is also believed to tap growth opportunity in the domestic market with signs of a shift from Chinese sourcing of inputs.
The biggest trigger for the beleaguered textile manufacturer remains the sustained improvement in business fundamentals and balance sheet.
Arvind Limited is a textile manufacturer and the flagship company of Lalbhai Group. Its headquarters are in Naroda (Ahmedabad, Gujarat) and units in Santej. The company manufactures cotton shirting, denim, knits, and bottom-weight fabrics.