Investment in the World shares
Market-recommendation
Kewal Kiran Clothing Ltd: Buy
Medium-term perspective, Investors may buy a retailer of value Kewal Kiran clothing (KKCL), taking into account the strength of its brand, offers a balanced presence of geographical segments, and superior margins.
R 400 AT stock is trading at the end of the 14 times four quarter revenue and 12 times estimated earnings FOR FY-11. The peer-to-peer such as Provogue Indian trade is at the end of the 26 times their earnings.
"Killer" is the flagship offering KKCL, whether the controller is a good brand replacement value in the segment, contributing to a good 50% of revenue. other key characters are club-wear Lawman Pg3 and causal-wear in the case of records kept by Integriti, 45% of sales. The last is the official wear, Easies.
Therefore, KKCL covers the gamut of apparel segments and has a higher dumping margin accessories also available.Associations with prominent fashion shows and movies also contribute to the visibility of the brand. Easies, except for other brands in a major segment of young people are the sole responsibility of the men and women, Although the focus of a larger KKCL. menswear, segment makes up about half of the clothing market.
The products are sold Multi Brand outlets (MBO) and privately Brand outlets (MBO) individual characters and k lounge, the format, which provides all KKCL characters.MBO and widening market EBOs allows at the same time, in order to monitor the stock investment cruises. Sales attributed primarily to MBO, capable it well until it can build a characters draws footfalls exclusively in stores.EBOs affected sales FY 10 27%.Thirty six new stores were opened in FY-10, when are underperforming stocks 20 was close, bringing the total number of stores 139.It is planning to open 50 stocks at the end of FY-11, in particular small towns where it already has been built through the presence of the MBO.
Revenue are fair geographically risks, in order to mitigate the effects of the concentration range. 31.March 2010, ended the year, sales rose by a four-year compounded annual quantity shall be 20% r. 175.3 crore, even if the net profit increased by 29% r 32,6 crore June quarter saw sales and net profit growth of 36 and 41% in the second and third quarters. as a general rule, retailers, good sales during the sales growth is likely to be supported.
Sedate pace store expansion value retail trade-to-peer and franchising route expansion aggressive against the methods used to keep a small permitted debt debt ehtoisista 0,1 KKCL. other value to retailers that committed itself to debt-fuelled gas vehicle extension now face the serious problems the contingency operations. Backward integration manufacture and captive of wind power margins are in most nodes. Business injury margins were 32 FY-10% up to 20%, the Tk-09, the administration costs alenemiseen.net injury margins were 19% of the FY-10, tint 18%, Tk-despite a larger tax reduction, 09.
Bhavana Acharya
BL Research Bureau
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