Arvind outgrows by 6 % on the bourses, post management commentary

India’s largest integrated textile and apparel company, Arvind has spiked up in trade on Friday, December 30, 2016 post management's commentary on debt levels and sales, post the demonetisation drive by the Government of India.

Company’s stock has jumped post management declaring that the company plans to pare down Rs 2400 to 2800 crore in debts by the end of current fiscal year. As of quarter ending September 30, 2016, Arvind’s total debt stands at Rs 3425 crore. It would be a real positive for the company if it successfully pares down its debt level by 70-80 per cent as indicated by the management of the company.

Company also said that after demonetisation, company sales have suffered for some time now. However, December sales have surprised the management on the positive side. Arvind is currently making 80-90 per cent sale through cheque and other digital payment modes.

Post demonetisation Arvind’s stock has witnessed a massive selloff as it declined close to 18 per cent, making it attractive for long term investors.

Post management's encouraging words, the stock seems to have gotten its mojo back as it currently is trading at Rs 350.50, up by 5.10 per cent on NSE with a greater possibility of an upside in the coming weeks.