About Company:-
Cantabil Retail India Ltd was incorporated in 1989 and started its readymade garments manufacturing and retailing business in the year 2000.
Market Cap
₹ 1,652 Cr.
Current Price
₹ 1,011
High / Low
₹ 1,595 / 800
Stock P/E
28.2
Book Value
₹ 111
Dividend Yield
0.25 %
ROCE
21.8 %
ROE
26.8 %
Face Value
₹ 10.0
Debt
₹ 300 Cr.
EPS
₹ 35.8
PEG Ratio
0.50
Promoter holding
75.0 %
Intrinsic Value
₹ 539
Pledged percentage
0.00 %
EVEBITDA
12.1
PROS
Company is expected to give good quarter
Company has delivered good profit growth of 56.1% CAGR over last 5 years
Well Stock is good and trading at discounted price, it can give you huge returns as business model is really futuristic, let me tell you more about this ticker like product portfolio, online revenue, Expansion, focus etc..
Product Portfolio
Men’s Wear (86%) - Formals, Casuals, Ultra Casuals, Woollen, Knitwear
Women’s Wear (9%) - Shirts, Tops, Leggings, Kurtas, Kurtis, Capri, Pants, Jeans
Kids Wear (2%) - Shirts, T-shirts, denim, trousers, Culottes, dresses, tops, jeggings, shorts
Accessories (3%) - Innerwear, Belts, Socks, Ties, Handkerchief, Deo, etc.
Online Revenues
As of now, online sales generate 1% of the company's total revenue and the Company expects online business to grow to nearly 5% in the next 3-4 years. But the Co. is focused on expanding via brick-and-mortar stores especially in the tier 2 and tier 3 cities and towns.
Manufacturing Capacity
The company has established a 1.5 lakh sq.ft. state of an art manufacturing facility in Bahadurgarh, Haryana with a capacity to produce 10 Lakh garment pcs./p.a viz, equipped with best brand machines from JUKI, Durkopp, Brother, Ngai Shing, Kansai, Pfaff, Maier, Siruba, Sako and latest finishing equipment using hot and cold steam foam finishers from Veit and Macpi.
Expansion
In FY22, Company added 58 new stores and invested in building a new multi-floor warehousing facility cum corporate office to make it hassle-free and improve controls over inventory and warehousing management significantly.
Distribution Network
The company sells its products under its brand Cantabil, Kenaston, Crozo, and Lil Potatoes through 378 Showrooms/ Stores and 414 Outlets in 18 states.
Asset Light Model
The company operates with an asset-light model wherein only about 1/3rd of the apparel are manufactured in-house at its fully integrated facility in Bahadurgarh. And sources another 1/3rd of its requirements from dedicated job workers and the balance ~1/3rd is purchased on a FOB basis directly from manufacturers.
Focus
The company is focused on expanding via brick-and-mortar stores in the country especially targeting the tier 2 and tier 3 cities and towns where it gets to take advantage of the first mover benefit.
I have done my analysis about this ticker. Stock is looking attractive at these levels. So if anyone wants to go long can go for target of 1600 and keep stop loss at 800,,but this is kind of stock where you can create wealth in long term.
Disclaimer:- I already have investment in this from down levels and i am holding this for long term.
If anyone likes my work then please like, follow and comment.
Thankyou:-))