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Indian retailer Arvind Fashions reported a more than two-fold rise in fourth-quarter profit on Tuesday, aided by steady demand for premium clothing brands.

The company, which retails clothing from brands such as Arrow, Calvin Klein and Tommy Hilfiger, reported a consolidated net profit of 243.2 million rupees ($2.92 million) up from 109.1 million rupees a year ago.

Its revenue from operations rose nearly 4% to 10.94 billion rupees.

KEY CONTEXT

Indian retailers have been grappling with slower volume growth amid heightened competition and had to offer heavy discounts to sway customers, hurting their topline.

However, demand for premium products aimed at high-income consumers remains a key driver of sales growth.

Rival Shoppers Stop reported a 53% rise in fourth-quarter profit last month, helped by demand in its beauty and luxury segments.

PEER COMPARISON

Valuation (next 12 Estimates (next 12 Analysts' sentiment

months) months)

RIC PE EV/EBITD Revenue growth Profit Mean # of Stock to Div yield (%)

A growth rating* analysts price

target**

Arvind Fashions 40.62 11.38 12.45 113.01 Strong 5 0.82 0.21

Buy

Shoppers Stop 56.50 12.03 23.49 66.55 Hold 7 0.92 --

Trent 106.38 59.37 37.66 57.76 Buy 13 1.13 0.07

Aditya Birla -- 18.49 15.81 -- Hold 17 1.12 --

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

JANUARY-MARCH STOCK PERFORMANCE

-- All data from LSEG

-- $1 = 83.2892 Indian rupees