Saturday, September 10, 2011

India Innerwear Listed Brands,stocks valuation - Jockey,Lovable,Rupa,VIP

Today another popular Innerwear brand - Rupa, listed on BSE. It joins other listed peers - Page Industries ( Jockey ), Lovable Lingerie, Maxwell Industries (VIP,Frenchie,Feelings). This entire sector has outperformed the market by a huge margin ( with Maxwell being the exception). Here is the comparison

  • Page Industries IPO Listed in Mar 2007 at IPO price of 360. Cmp (Current Market Price) of 2670 or returns of 7.5x. Stock Chart performance since listing here. Even when during the IPO it was priced quite richly at 25x -30x PE and was subscribed just 1.4x and many brokerages such as these advised not to apply.
  •  Lovable Lingerie IPO listed in Mar 2011 and IPO was priced at 205. Cmp 600 or 3x return.Stock Chart performance since IPO listing here.
  •  Maxwell Is already listed but has the lowest EBITDA margins and high debt and hence lowest valuations.
  •  Rupa and Company just listed at BSE on 9 Sep 2011 at 200. It`s margins are not great as Page or Lovable and should deserve to trade at lower valuation multiples.
I still hold KKCL ( maker of Killer Jeans) and on valuation basis I see it as a better play vs the innerwear makers. After all ,Outwear should be priced higher than innerwear. Here is the valuation comparison (Click to zoom )


Anonymous said...

nice post, but dont you think valuations are rich, Page, Rupa & Lovable at 40x-70x !!However like the ROE & low debt... consumption story still interesting...

Babypicks said...

Page Industries is a brilliant company generating free cash flows led by high RoE, earnings growth even at high dividend payouts. Thats the power of good brands and company run by able management. Comparatively, Rupa & Company kind of stands weak. Additionally, with an RoE of about 20-25% with lower earnings growth, Rupa will not be able to command a P/E upwards of 25. Given FY11 EPS of 4, that would mean the stock is very expensive over 100 a piece.

seema said...

Wow! That's really great information guys.I know lot of new things here. Really great contribution.Thank you ...

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