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Shares of Arvind Ltd regained the bullish momentum at the bourses to register a new lifetime peak on Wednesday after the company said it is joining hands with PVH Corp to run the Calvin Klein business in India.
Arvind on Monday announced it has picked up the 49 per cent stake held by the Murjani Group in Calvin Klein in India. With this, Arvind and PVH Corp are expected to drive Calvin Klein’s business in the country.
The stock on Wednesday registered its all-time peak of ₹167.7 before settling at ₹165.6 on the BSE, a gain of 6.2 per cent. Trading volumes have also been on the rise. Compared to two-week average of 2.42 lakh shares, the counter saw a trading volume of 14.33 crore shares on the BSE.
Niket Shah of Motilal Oswal Securities believes that the acquisition of CK provides huge potential for scalability with improvement in brands and retail margins going forward.
“With brands such as Calvin Klein, Tommy Hilfiger, US Polo, Ed Hardy and Flying Machine, Arvind has a complete portfolio of denim brands with price points from ₹750 to ₹10,000,” said Shah.
From a low of ₹12.6 five years ago, the stock has witnessed a phenomenal run on the bourses.
It is one of the counters, which witnessed churning by foreign institutional investors. At the end of December 2013, FIIs hold 19.15 per cent stake in the company as against 17.42 per cent in December 2012. Their stake dipped to 15.97 per cent at the end of September 2013.
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