Arvind Mills spurts after new tie-up

Arvind Mills surged 5.58% to Rs 36.90 at 9:55 IST on BSE after the company said Arvind Brands a division of the company has signed an agreement with Philips-Van Heusen Corporation for designing, distribution & retailing of IZOD brand in India.

The company made this announcement after trading hours on Monday, 24 March 2008.

The stock had a 52-week high of Rs 93.50 on 31 December 2007 and a 52-week low of Rs 34.25 on 24 March 2008.

The company’s current equity is Rs 209.38 crore. Face value per share is Rs 10.

The current price of Rs 36.90 discounts its Q3 December 2007 annualized EPS of Rs 1.08, by a PE multiple of 34.17.

Arvind Mills’ net profit declined 94.6% to Rs 5.67 crore on 19.9% growth in net sales to Rs 536.84 crore in Q3 December 2007 over Q3 December 2006.

As per the licensing agreement, Arvind Brands, the second largest branded apparel maker in the country, will have the exclusive rights to design, distribute and retail IZOD in India. The agreement covers a wide range of categories including sportshirts, T-shirts, casual trousers, shorts, swimwear, active wear & accessories. The partnership will also focus on creating IZOD flagship stores in India.

Arvind Mills is one of the leading textile manufacturers in the country. It owns various brands like Flying Machine, Newport and Ruf & Tuf jeans and Excalibur shirts. The company services the entire domestic market besides exporting to neighboring countries.