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Subscribe to Khadim India IPO for medium to long term perspective - IndiaNotes.com
Subscribe to Khadim India IPO for medium to long term perspective
AUM CAPITAL | Published: 03 Nov, 2017  | Source : IndiaNotes.com

Objects of the Issue


-  The offer consists of the Fresh Issue by the Company and the Offer for Sale (OFS). The company will not receive any proceeds from the OFS.

-  The proceeds of the IPO will be used for

i. prepayment or scheduled repayment of all or a portion of term loans and working capital facilities availed by the company and
ii. for general corporate purposes.


Key Points



Performance Highlights
– In FY17, revenue of the company increased by 16% to Rs. 312 crore and PAT grew by 22% to Rs. 31 crore from the previous year. For the period of FY 13-17, its revenue and PAT grew at a CAGR of ~10% and ~36% respectively.


Leading footwear brand
- Primarily a family brand with comprehensive product range of footwear and their shoes are supremely cost-effective and of durable quality to give an unmatched value-for-money experience. In FY17 its maximum retail price ranged from Rs. 75 to Rs. 3,599 for the products and mainly targets middle and higher income customers.


Strong design capabilities - KIL’s strong in-house design capabilities have enabled them to create designs for consumers across diverse segments for various seasons and festivals. Company’s market research and survey towards fashion trends across international and domestic markets enables it to understand the changing needs of the consumers. Its detailed design process pursuant also enables to create and grow their sub-brands.


Two-pronged market strategy - Company operates through two distinct business models, retail and distribution, each with its own customer base, sales channel and product range catering to middle and upper middle income consumers in metros, Tier I – Tier III cities with a wide network of distributors.


Extensive geographical reach
– KIL is the second largest footwear retailer in India, with the largest presence in East India and one of the top three players in South India, in fiscal 2016 and has also forayed into markets in West India and primarily in Uttar Pradesh in North India.


Recommendation
– One of the leading footwear brands in India providing different variety of footwear products along with accessories such as wallets, belts and bags for all categories at affordable prices. Company has strong hold in eastern and southern India with expansion plans across other parts of the country would be beneficial for their growth. KIL’s innovative designs and online presence with strong brand recognition will bring better business opportunity for the company. Hence, we recommend to SUBSCRIBE the issue for medium to long term perspective.   Read full report Click here to read the full report


About AUM CAPITAL

With a strong intellectual base coupled with an un-parallel bouquet of products and services, AUM Capital has emerged as the preferred advisor for the discerning customer. Their offerings span across Wealth Management, Equity Broking, International Finance, Trade Finance, Investment Banking, and Insurance, among othes, all of which ensure a holistic solution for the client. With exclusive services in the investment banking and securities business, they provide a full spectrum of services to all our clients and financial intermediaries. They can be reached at: www.aumcap.com/.

 

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Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor IndiaNotes.com accept any liability whatsoever arising from the use of any of the above contents.