Arvind Fashions shares are currently trading at ₹460.45 as of 2:46 p.m. on May 8, 2026, on NSE/BSE, reflecting strong market interest following the company's latest financial results. The stock has shown significant movement from the previous target price of ₹620, indicating active market participation and investor confidence in the company's growth trajectory.
Motilal Oswal has issued a buy rating on Arvind Fashions with a target price of ₹620 in its research report dated May 07, 2026. According to the brokerage's analysis, the stock is currently trading at an attractive ~36x FY27E attributable PAT compared to ~47x for ABLBL, despite similar profitability levels between the two companies. The recommendation is based on the company's strong operational performance, digital transformation success, and attractive valuation metrics relative to similar companies in the sector.
Arvind Fashions (AFL) ended FY26 on a strong note with 4Q/FY26 LFL growth of 8%, led by robust performance in US Polo and Flying Machine brands. As reported by Motilal Oswal, online B2C sales grew 46% YoY in 4Q with 48% growth for the full FY26, demonstrating strong digital transformation momentum. The company's D2C mix increased by 340bp to 56.8% in 4Q, reflecting continued focus on owned channels and direct-to-consumer strategies.
EBITDA margin expanded ~50bp YoY to 13.9% in 4Q, driving 19% EBITDA growth to ₹1.9 billion. According to Motilal Oswal's research, this margin expansion demonstrates improved operational efficiency and cost management initiatives. The strong quarterly performance reflects the company's ability to maintain profitability while investing in growth initiatives across its brand portfolio, with Q4 revenue beating forecaster estimates by 1.8% on the back of store additions and premium sales.
Motilal Oswal's research report maintains a BUY rating with a revised SOTP-based target price of ₹620. The brokerage notes that AFL currently trades at an attractive ~36x FY27E attributable PAT compared to the peer group, suggesting potential upside from current levels. The recommendation is supported by the company's strong operational performance, digital transformation success, and attractive valuation metrics relative to similar companies in the sector, with the stock showing good quality scores and strong financials that are affordably priced with potential for good returns.
