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Indian retailer Arvind Fashions reported a 36.6% rise in second-quarter profit on Monday, aided by sustained demand for its premium clothing brands.

The company, which retails clothing from international brands such as Arrow, Calvin Klein and Tommy Hilfiger, said its profit after tax rose to 300 million rupees ($3.6 million) for the quarter ended Sept. 30 from 220 million rupees a year ago.

Its revenue from operations grew 8.5% to 12.73 billion rupees.

KEY CONTEXT

Indian retailers have been grappling with subdued demand due to intensifying competition and moderating discretionary spending as inflation accelerated in the quarter.

However, demand for premium products aimed at higher income consumers boosted the sales of companies, including Arvind Fashions.

Peer Shoppers Stop reported a loss in the second quarter as weaker discretionary spending weighed on the company's bottomline.

PEER COMPARISON

Valuation (next 12 Estimates (next 12 Analysts' sentiment

months) months)

RIC PE EV/EBITDA Revenue Profit Mean No. of Stock to Div

growth growth rating* analyst price yield

s target** (%)

Arvind Fashions 44.24 12.30 12.83 59.13 Strong 5 0.91 0.23

Buy

Shoppers Stop 81.89 14.04 15.03 19.21 Hold 6 0.84 NULL

Trent 120.3 76.61 39.21 48.05 Buy 12 1.23 0.04

1

Aditya Birla NULL 19.61 15.20 NULL Sell 18 1.02 NULL

Fashion and Retail

* Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

JULY-SEPTEMBER STOCK PERFORMANCE

-- All data from LSEG

-- $1 = 84.0510 Indian rupees