Aarvee Denims and Exports Limited is an India-based company engaged in the textile industry, specifically in the manufacturing and selling of denim and non-denim fabrics for both domestic and international markets. Incorporated in March 1988 as a private limited company, it was converted into a public limited company in April 1992. Established in 1988 by the Arora & VB Group, which has over 50 years of experience in textile trade, these promoters are the driving forces behind this dynamic organization. The company's manufacturing plant is located at Narol, Ahmedabad. Aarvee Denims & Exports Ltd has evolved from its humble beginnings to become a significant player in the global textile industry, rapidly expanding its presence across international markets.
The market capitalization of Aarvee Denims and Exports Ltd (AARVEEDEN) was ₹327.64 Cr as of May 22, 2025. The company is classified as a Small Cap company by Value Research.
Recent financial performance shows mixed results. The company reported a standalone net loss of ₹6.94 crore in Q3 FY25, compared to a net loss of ₹6.60 crore in Q3 FY24. Revenue from operations significantly decreased by 76.8% year-on-year to ₹5.94 crore in Q3 FY25. However, there have been positive indicators, such as a standalone net profit of ₹8.27 crore reported for the September 2024 quarter, indicating the company's ability to return to profitability in certain periods.
Aarvee Denims has reduced its debt. While the company has delivered good profit growth of 19.8% CAGR over the last 5 years, and debtor days have improved from 223 to 66.7 days, it has experienced a poor sales growth of -40.4% over the past five years.
- Market Capitalization: ₹327.64 Cr (as of May 22, 2025)
- Promoter Holding: 38.8%
- Q3 FY25 Performance: Net Loss of ₹6.94 crore; Revenue ₹5.94 crore
- September 2024 Quarter Performance: Net Profit of ₹8.27 crore
- TTM Revenue: ₹42.4 Cr
- TTM Profit: ₹18.5 Cr
- Market Cap Growth (1 Year): Up 484% (as of May 2025)
- Profit Growth (5 Years): 19.8% CAGR
- Sales Growth (5 Years): -40.4%
- Debtor Days: Improved from 223 to 66.7 days
The company boasts integrated production capabilities for:
- Yarn: (Open End, Ring & PTY) with a capacity of 39,000 metric tons/annum
- Denim Fabric: 85 million meters/annum
- Non-Denim Bottom Wear Fabric: 18 million meters/annum
The company also generates green energy with installations of 20.5 MW Wind Power. This comprehensive setup highlights a vertically integrated approach, allowing for greater control over quality and cost efficiency. Aarvee Denims & Exports Ltd's in-house spinning, sizing, weaving, dyeing, and finishing capabilities, equipped with top-notch machines and advanced technologies, ensure stringent start-to-finish quality control. The flexible and responsive vertically integrated production process enables quick responses to market demand by producing distinct designs and weaves in the shortest possible turnaround times.
The primary raw material is coarser cotton, with imports from the United States, Brazil, Argentina, and Pakistan. The company operates through two segments: Textile and Windmill. Its integrated yarn production capacity is approximately 39,000 metric tons/annum, denim fabric capacity exceeds 85 million meters/annum, and non-denim bottom wear fabric capacity is around 18 million meters/annum. The company has three divisions: Cotton Fiber, Yarn, and Fabrics.
The 52-week high for Aarvee Denims and Exports Ltd (AARVEEDEN) is ₹159.90, and the 52-week low is ₹21.65. Over the past 6 months, the share price has increased by 64.88%, and in the last year, it has risen by 453.42%. This remarkable performance indicates strong investor interest.
The P/B ratio was 4.96 times as of May 22, 2025, representing a 417% premium to its peers' median range of 0.96 times. The stock is currently trading at a premium valuation compared to industry peers, reflecting market expectations of growth potential.
Aarvee Denims & Exports Ltd aims to increase its turnover from USD 145 million to USD 200 million by next year. This ambitious target underscores the company's growth aspirations and strategic focus on significant business expansion.
The company actively participates in industry exhibitions and trade shows, such as showcasing its latest denim collections at Gartex Texprocess India, Mumbai (May 22-24, 2025), demonstrating its commitment to innovation and market reach.
Aarvee Denims' wholly owned subsidiary is Aye Ess Spinning Mills Private Limited, which allows for operational diversification and strengthening its position in the textile value chain.
The company's positioning as a leading global player in the textile industry, combined with its integrated manufacturing capabilities, diversified product portfolio (including green energy generation), and ambitious growth targets, presents an interesting proposition in the textile sector. However, investors should carefully consider the recent financial performance volatility and industry challenges when evaluating investment opportunities.
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