Motilal Oswal Recommends 'BUY' on Arvind Fashions, Sets INR 700 Target

• Arvind Fashions (AFL) reported strong quarterly revenue growth of 15%, surpassing estimates by 3%.
• Same-store sales growth (SSSG) was healthy at 8.2%, driven primarily by USPA's 25% growth.
• USPA's performance was boosted by product elevation, premiumization, and enhanced retail execution.
• EBITDA margins expanded by 40 basis points due to a better product mix and controlled discounting, despite higher employee costs.
• Motilal Oswal reiterates a 'BUY' rating with a revised SOTP-based target price of INR 700, citing undemanding valuations.

Why It Matters: Motilal Oswal recommends buying Arvind Fashions, projecting a target of INR 700 based on strong performance and growth.