Motilal Oswal Initiates Buy on Arvind Fashions with Rs 725 Target

• Motilal Oswal recommends a "Buy" rating for Arvind Fashions (AFL) with a target price of Rs 725.
• AFL is a leading branded apparel company with a portfolio including U.S. Polo Assn., Arrow, Tommy Hilfiger, and Calvin Klein.
• Post-Covid, AFL executed a turnaround by exiting non-core businesses, leading to improved profitability and capital efficiency.
• The company surpassed pre-Covid revenue by FY25, driven by power brands and an asset-light, consignment-led model.
• Motilal Oswal projects strong growth for AFL, with revenue/EBITDA/PAT CAGRs of 13%/25%/32% respectively over FY26-28E.

Why It Matters: Motilal Oswal recommends buying Arvind Fashions stock with a Rs 725 target.