Credo Brands Marketing Ltd - Stock Valuation and Financial Performance

BSE: 544058 | NSE: MUFTI | Trading | Small Cap

Credo Brands Mktg Share Price

189.45 -1.25 -0.66%
as on 12-Apr'24 10:20

DeciZen - make an informed investing decision on Credo Brands Mktg

Overall Rating
Bole Toh

1. Quality

2. Valuation

Fair

3. Price Trend

Credo Brands Marketing stock performance -

mw4me loader
P/E Ratio (SA):
15.90
Market Cap:
1,231.3 Cr.
52-wk low:
165.8
52-wk high:
324.6

Is Credo Brands Marketing Ltd an attractive stock to invest in?

1. Is Credo Brands Marketing Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Credo Brands Marketing Ltd is a good quality company.

2. Is Credo Brands Marketing Ltd undervalued or overvalued?

The key valuation ratios of Credo Brands Marketing Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Credo Brands Marketing Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Credo Brands Marketing Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Credo Brands Mktg:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Credo Brands Marketing Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 41.3%26.5%23.8%13.5%7.6%9%9.3%5.8%18.8%33.3%-
Value Creation
Index
2.00.90.70.0-0.5-0.4-0.3-0.60.31.4-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 314329370370358395450293341498498
Sales YoY Gr.-4.8%12.3%0.2%-3.4%10.4%14%-34.8%16.3%46%-
Adj EPS 7.45.86.23.82.12.72.61.45.212.112
YoY Gr.--21.5%6.2%-37.7%-44.9%28.4%-4.8%-45.4%265.3%134%-
BVPS (₹) 2024.226.628.628.929.829.530.936.743.6136.5
Adj Net
Profit
47.136.939.324.513.517.316.5932.977.577
Cash Flow from Ops. 8.321.211.119.329.472461.278.474.5-
Debt/CF from Ops. 0.10.10.80.70.34.71.80.30.20.1-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 5.3%6.9%3.5%46%
Adj EPS 5.6%41.7%67.2%134%
BVPS9.1%8.6%14%19%
Share Price - - - -

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
45.326.224.213.97.39.28.74.715.23013.3
Op. Profit
Mgn %
23.717.518.5139.69.4109.927.332.532.9
Net Profit
Mgn %
1511.210.66.63.84.43.73.19.615.615.6
Debt to
Equity
000.10.10.10.20.20.10.10-
Working Cap
Days
13014816018619818818428221918052
Cash Conv.
Cycle
8011312615015614213419313511229

Recent Performance Summary

Net Profit is growing at healthy rate in last 3 years 67.16%

Return on Equity has declined versus last 3 years average to 13.30%

Sales growth has been subdued in last 3 years 3.45%

Sales growth is not so good in last 4 quarters at 7.78%

Latest Financials - Credo Brands Marketing Ltd.

Standalone Consolidated
TTM EPS (₹) 12 12
TTM Sales (₹ Cr.) 498 498
BVPS (₹.) 136.5 136.5
Reserves (₹ Cr.) 867 867
P/BV 1.40 1.40
PE 15.90 15.88
From the Market
52 Week Low / High (₹) 165.80 / 324.55
All Time Low / High (₹) 165.80 / 324.55
Market Cap (₹ Cr.) 1,231
Equity (₹ Cr.) 12.9
Face Value (₹) 2
Industry PE 79.8

Management X-Ray of Credo Brands Mktg:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Credo Brands Mktg

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales314329370370358395450293341498
Operating Expenses 240272301323323358406265248336
Manufacturing Costs977710141182434
Material Costs132139158165161171192123147212
Employee Cost 15192428324037212927
Other Costs 841061121231211331661134864
Operating Profit 745868483437442893162
Operating Profit Margin (%) 23.6%17.5%18.5%12.9%9.6%9.3%9.7%9.7%27.3%32.5%
Other Income 241111221413
Interest 111122751518
Depreciation 449991113134653
Exceptional Items 0000000000
Profit Before Tax 725760382425261246104
Tax 252021141081131226
Profit After Tax 4737392413171693477
PAT Margin (%) 15.0%11.2%10.6%6.5%3.8%4.3%3.5%2.9%9.9%15.5%
Adjusted EPS (₹)7.45.86.13.82.12.72.51.45.312.1
Dividend Payout Ratio (%)0%26%51%40%71%56%92%0%0%42%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 127155170182184190188197234280
Share Capital 3333333333
Reserves 124152167179181187185194231277
Minority Interest0000000000
Debt119138324115107
Long Term Debt0001101513107
Short Term Debt0191173226200
Trade Payables12131213151923353742
Others Liabilities 2925292626253635180225
Total Liabilities 169193220235234266289282460554

Fixed Assets

Gross Block324152607285104105223333
Accumulated Depreciation12132027364556654698
Net Fixed Assets2028323336404741178235
CWIP 0000051010
Investments 0044440000
Inventories293236334267605966113
Trade Receivables8494129142124115143122124137
Cash Equivalents 23241221226519
Others Assets13151720263436344159
Total Assets 169193220235234266289282460554

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 821111929724617875
PBT 725760402525261246104
Adjustment 44911121216166364
Changes in Working Capital -68-39-37-8-3-17-1436-11-63
Tax Paid 00-22-23-5-13-4-3-20-31
Cash Flow From Investing Activity -7-11-17-10-13-19-14-7-28-21
Capex -7-15-18-11-13-19-14-7-15-34
Net Investments 00000000-1414
Others 041001001-1
Cash Flow From Financing Activity -1-10-17-8-1712-9-31-39-82
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing 0000000000
Interest Paid 0-10-1-11-3-3-3-3
Dividend Paid 0-10-20-12-1212-1700-32
Others 0044-5-111-28-36-47
Net Cash Flow 11-221-1012411-28
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)45.2526.1824.0913.667.349.178.264.4815.6530.11
ROCE (%)6340.6136.520.8113.2913.1114.457.926.3344.94
Asset Turnover Ratio2.061.821.791.631.531.581.621.0311.07
PAT to CFO Conversion(x)0.170.570.280.792.230.411.56.782.290.97
Working Capital Days
Receivable Days919911013413611010416512188
Inventory Days23343334385051746160
Payable Days57322929333740868968

Credo Brands Marketing Ltd Stock News

Credo Brands Marketing Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Credo Brands Mktg on 12-Apr-2024 10:20 is ₹189.4.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 12-Apr-2024 10:20 the market cap of Credo Brands Mktg stood at ₹1,231.3.
The latest P/E ratio of Credo Brands Mktg as of 12-Apr-2024 10:20 is 15.90.
The latest P/B ratio of Credo Brands Mktg as of 12-Apr-2024 10:20 is 1.40.
The 52-week high of Credo Brands Mktg is ₹324.6 and the 52-week low is ₹165.8.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Credo Brands Mktg is ₹498.2 ( Cr.) .

About Credo Brands Marketing Ltd

The company was incorporated as a private limited company in the name of ‘Credo Brands Marketing Private Limited’ in Mumbai, Maharashtra, India under the Companies Act, 1956 pursuant to a certificate of incorporation dated April 29, 1999 issued by the Registrar of Companies, Maharashtra at Mumbai (the RoC). Subsequently, the company was converted from a private limited company to a public limited company and the name of the company was changed to ‘Credo Brands Marketing Limited’, pursuant to a board resolution dated April 7, 2023, and a special resolution passed by its shareholders on April 18, 2023, consequent to which a fresh certificate of incorporation dated May 11, 2023, was issued by the RoC to the company.

The company provides a meaningful wardrobe solution to multiple occasions in a customer’s life, with its product offerings ranging from shirts to t-shirts to jeans to chinos, which caters to all year-round clothing. The company’s products are designed to provide a youthful appearance while keeping up with the ongoing fashion trends. The company is engaged in the retail sale of garments and accessories, and it does not manufacture any apparel. The company’s brand “Mufti” was launched by its Promoter, Kamal Khushlani, with a vision to redefine menswear. The brand was created as an alternative dressing solution and was designed to deliver a casual alternative with a focus on creative, bold, and expressive clothing for the contemporary Indian man who wanted something more stylish than what was commonly available.

In order to keep pace with these evolving fashion trends, the company’s product mix has evolved significantly over the past several years from consisting of only shirts, t-shirts and trousers in the year 1998 to a wide range of products including sweatshirts, jeans, cargos, chinos, jackets, blazers and sweaters in relaxed holiday casuals, authentic daily casuals to urban casuals, party wear and also athleisure categories as on date. The company’s design team is constantly focusing on expanding its product range to meet a varied range of consumer needs. The company’s products are available through a Pan-India multichannel distribution network that it has built over the years comprising of its exclusive brand outlets (EBOs), large format stores (LFSs) and multi-brand outlets (MBOs), as well as online channels comprising of its website and other e-commerce marketplaces. The company’s multi-channel presence is planned strategically in a manner that its products across categories are available at consumers’ preferred shopping channels. The company’s well-established EBO network offers a holistic shopping experience for its customers. The company’s EBOs are located nationwide across high streets, malls, airports and residential market areas. It also has an online presence which is rapidly growing wherein its customers can shop through its website, www.muftijeans.in, as well as through various e-commerce marketplaces.

Business area of the company

The company offers casual clothing for men with its flagship brand ‘Mufti’. The company's product range consisted only of shirts, T-shirts and trousers. Today, however, the company offers a wide range of products including sweatshirts, jeans, cargos, chinos, jackets, blazers and sweaters. These products are available in different categories, e.g. relaxed casual wear for vacations, authentic everyday wear, urban casual wear, party wear and athleisure. 

Key Awards, Accreditations and Recognition

  • 2011: The company was chosen as an ‘Indian Power Brand’ by the Indian consumer at the Indian Power Brands, the Global Superpower Edition.
  • 2013: The company was awarded the title of ‘Badshah-e-Hind – Esteemed King of India’ by Indian Power Brands at the GlamMe Awards.
  • 2013: The company received an award for the ‘Most Admired RMG Manufacturer – West’ from InFashion Honours, Faitma Images.
  • 2014: The company was awarded the Golden Scale Trophy for the ‘Brand of the Year – Men’s Casual Wear’ by Apex.
  • 2015: The company’s Promoter, Kamal Khushlani was awarded the title of one of the ‘Most Talented Retail Professionals’ by CMO Asia at the Asia Retail Congress.
  • 2015: The company’s Promoter, Kamal Khushlani received the ‘Retail Leadership Award’ by CMO Asia at the Retail Excellence Awards.
  • 2017: The company’s Promoter, Kamal Khushlani was named in the ‘Most Influential Retail Leaders Listing’ by Asia-AfricaGCC Retail and Shopping Centre Congress and Awards at the Asia Retail Congress.
  • 2019: The company received ‘Retailer of the Year (Fashion and Lifestyle)’ award at the Global Awards for Retail Excellence by ET Now.

Major events and milestones

  • 1998: Launch of the brand “Mufti”.
  • 1999: Incorporation of the Company.
  • 2003: Brand purchased by the Company from proprietary concern of Kamal Khushlani.
  • 2008: Investment by Bennett Coleman & Co. Limited.
  • 2010: Opened 100th store.
  • 2013: Opened 200th store.
  • 2019: Reinvented the brand philosophy & new logo.
  • 2019: Opened 300th store.
  • 2022: Opened 350th store.


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