The document provides information on Arvind Ltd, a leading textile manufacturer in India. It lists the names and scores of team members, provides an overview of the Indian textile industry and Arvind's operations, and analyzes Arvind's financial ratios and performance over multiple years. It concludes that Arvind is the top company in the Indian textile industry based on its revenue, efficiency, and profitability.

2. Amey Naik - 89
Niraj Patel - 93
Prashant - 99
Sanif Sayyad –104
Anupama Telang - 115
Vishnu Radhakrishnan - 118
Vijay Yedke - 121
Team Members

3. Industry Overview
• Textile plays a major role in the Indian economy, It contributes 14 per cent to
industrial production and 4 per cent to GDP.
• With over 45 million people, the industry is one of the largest source of
employment generation in the country.
• The industry accounts for nearly 15 per cent of total exports.
• The size of India’s textile market in 2016 was around US$ 137 billion, which is
expected to touch US$ 226 billion market by 2023, growing at a CAGR of 8.7 per
cent between 2009-23E.
• As of June 2017, the central government is planning to finalize and launch the
new textile policy in the next three months. The policy aims to achieve US$ 300
billion worth of textile exports by 2024-25 and create an additional 35 million
jobs.

4. Company Overview
• Arvind is textile manufacturer and the flagship company of the Lalbhai Group.
• Manufactures cotton shirting, denim, knits and bottomweight (khaki) fabrics
• world’s fourth-largest producer and exporter of denim
• Leadership:
Sanjay S Lalbhai Chairman & Managing Director
Jayesh K Shah WholeTime Director & CFO
Punit S Lalbhai Executive Director
Kulin S Lalbhai Executive Director

5. Mumbai
Ahmedabad
Gandhinagar Pune
Bengaluru Naroda Kalol
Delhi
LOCATION

6. BRANDS

7. Indian Textile Market

8. Financial Ratios

9. Liquidity Ratios
Particulars Formula FY 2016-2017 FY 2015-2016 FY 2014-2015 FY 2013-2014
Current Ratio (Current Assets)/
(Current Liabilities) 0.98 1.03 1.05 1.12
Quick Ratio (Current Asset-
Inventories)
/(Current Liabilities)
0.50 0.60 0.64 0.68

10. Activity Ratios
Particulars Formula FY 2016-2017 FY 2015-2016 FY 2014-2015 FY 2013-2014
Inventory TurnoverCOGS/ Average
Inventory 4.58 4.75 5.02 5.07
Debtors Turnover Sales/ Accounts
Receivables 12.15 12.26 10.65 9.93
Average Collection
Period
365/ Debtors
Turnover 30 days 29.7 days 34 days 37 days
Total Asset
Turnover
Sales/ Total Assets
83.25% 76.34% 78.53% 79.14%
Debt to Equity
Ratio
Total Debt/ Total
Shareholders 0.87 0.97 0.97 0.95

11. Profitability Ratios
Particulars Formula FY 2016-2017 FY 2015-2016 FY 2014-2015 FY 2013-2014
PBT Margin Profit Before
Tax/Sales
6.42% 8.3% 9.14% 8.55%
Operating Margin EBIT/ Sales 10.35% 14.2% 15.87% 15.10%
Net Profit Margin Net Income / Sales 5.38% 5.89% 7.22% 7.56%

12. Return on Investment Ratios
Particulars Formula FY 2016-2017 FY 2015-2016 FY 2014-2015 FY 2013-2014
Return on Total
Assets
(Net Income)/
(Total Assets)
4.48% 4.5% 5.67% 5.98%
Return on Capital
Employed
(EBIT)/ (Capital
Employed)
6.08% 7.11% 9.14% 9.34%
Return on Equity (Net Income) /
(Total Equity)
10.48% 12.35% 14.62% 14%

13. Valuation Ratios
Particulars Formula FY 2016-2017 FY 2015-2016 FY 2014-2015 FY 2013-2014
Book Value Per
Share
(Total Equity)/
(Shares Outstanding) 125.39 106.43 99.77 91.47
Earning Per Share(Net Income)/
(Shares Outstanding) 10.49 12.35 14.62 14
Market to Book
Value
(Market Price) /
(Book Value) 3.54 2.57 2.63 1.90

14. Analysis
• Arvind’s average current ratio over the last 5 financial years has been 1.02 times which
indicates that the Company is comfortably placed to pay for its short term obligations.
• Company operates with manageable level of debt and will be able to ride out bad
economic cycles even if the Company’s profitability margins declines temporarily.
• In terms of profitability, the company has shown reduction in profits in the FY 2016-17,
but the same sluggishness has been observed overall in the textile industry.
• In its latest stock exchange filing dated 31 March 2017, Arvind reported a promoter
holding of 43.07 %. Large promoter holding indicates conviction and sincerity of the
promoters. We believe that a greater than 35 % promoter holding offers safety to the
retail investors.
• Overall, Arvind ltd is the leading company in the textile industry in terms of revenue,
efficiency and profitability and thus is the best bet to invest in the textile industry.