Aarnav Fashions Ltd. (AARNAV) AI Stock Analysis

Aarnav Fashions Ltd.

(NSE:AARNAV)

Select Model

Rating:65Neutral

Price Target:INR 33.00▲(6.18% Upside)

Action:initiatedcoverage

Date:10/02/26

Technical strength and balance sheet improvements are primary drivers, while inconsistent cash flows and thin margins cap the overall score.

Positive Factors

Improving Revenue GrowthThe return to stronger revenue growth indicates improved business activity after weaker prior years. If sustained, expanding sales can support operating leverage, strengthen market presence, and provide a broader base from which the company can improve profitability over the next several quarters.

Negative Factors

Weak Cash GenerationNegative free cash flow alongside positive earnings raises concerns about earnings quality, working-capital demands, and the company’s ability to fund operations internally. If this reversal persists, it could limit reinvestment, increase financing needs, and weaken resilience over the next several quarters.

Aarnav Fashions Ltd. (AARNAV) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 1.38B
Dividend Yield: ―
Average Volume (3M): 5,091
Price to Earnings (P/E): 15.0
Beta (1Y): 0.67
Revenue Growth: 16.47%
EPS Growth: -2.22%
Country: India
Employees: 167
Sector: General
Sector Strength: 55
Industry: Investment - Banking & Investment Services

Aarnav Fashions Ltd. Business Overview & Revenue Model

Company Description

Aarnav Fashions Limited engages in the manufacture and trade of textiles in India and internationally. The company provides shirting, suiting, quilts, dohars, bed and fitted sheets, and duvet cover textiles, as well as kid's and women's wears. It sel...

Aarnav Fashions Ltd. Financial Statement Overview

Summary

Revenue recovered to 4.62 billion with balance sheet improvement via reduced debt-to-equity to 0.55, but thin margins around 2% and negative free cash flow limit overall performance.

Income Statement

58Neutral

Balance Sheet

72Positive

Cash Flow

42Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2022
Income Statement
Total Revenue	4.52B	4.62B	3.79B	3.56B	4.19B	3.94B
Gross Profit	969.33M	976.74M	1.19B	1.14B	353.91M	333.87M
EBITDA	303.83M	307.40M	304.67M	274.39M	315.05M	190.31M
Net Income	91.38M	93.46M	92.39M	56.17M	93.16M	3.81M
Balance Sheet
Total Assets	0	3.98B	3.78B	3.91B	4.86B	4.19B
Cash, Cash Equivalents and Short-Term Investments	226.61M	226.61M	179.10M	171.55M	181.26M	167.15M
Total Debt	0	1.09B	995.45M	1.09B	1.53B	1.27B
Total Liabilities	-1.97B	2.01B	1.91B	2.12B	3.13B	2.46B
Stockholders Equity	1.97B	1.97B	1.86B	1.79B	1.73B	1.73B
Cash Flow
Free Cash Flow	0	-54.43M	224.98M	193.48M	150.51M	408.27M
Operating Cash Flow	0	97.80M	250.41M	228.30M	152.86M	440.15M
Investing Cash Flow	0	-158.84M	-29.19M	-47.96M	-5.15M	-33.71M
Financing Cash Flow	0	99.38M	-221.39M	-179.96M	-131.89M	-423.00M

Aarnav Fashions Ltd. Technical Analysis

Technical Analysis SentimentNeutral

Last Price31.08

Price Trends

50DMA33.54Negative

100DMA30.68Positive

200DMA27.93Positive

Market Momentum

MACD-0.59Positive

RSI45.63Neutral

STOCH37.23Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AARNAV, the sentiment is Neutral. The current price of 31.08 is below the 20-day moving average (MA) of 34.52, below the 50-day MA of 33.54, and above the 200-day MA of 27.93, indicating a neutral trend. The MACD of -0.59 indicates Positive momentum. The RSI at 45.63 is Neutral, neither overbought nor oversold. The STOCH value of 37.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:AARNAV.

Aarnav Fashions Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:AARNAV against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:AARNAV	65Neutral	INR 1.37B	15.04	―	―	16.47%	-2.22%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:WINSOME	47Neutral	INR 165.45M	-0.09	―	―	-98.74%	20.85%

* General Sector Average

Performance Comparison

IN:AARNAV and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:AARNAV	Aarnav Fashions Ltd.	32.49	-9.21	-22.09%
IN:WINSOME	Winsome Yarns Ltd	2.34	-657.66	-99.65%
IN:BONLON	Bonlon Industries Ltd	31.68	-18.68	-37.09%
IN:SINGERIND	Singer India Limited	91.42	18.66	25.64%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 02, 2026

Aarnav Fashions Ltd. AI Stock Analysis