Indian Terrain Fashions Ltd is a little known micro-cap stock with a market capitalisation of only Rs. 319 crore. However, it has suddenly attracted attention from heavy duty investors.
In just the last few days, Vijay Kedia (through Kedia Securities Pvt. Ltd) bought 30,000 shares. Malabar India Fund bought 1,12,000 shares. HSBC Mutual Fund bought 1,21,000 shares. Prof. Shivanad Mankekar’s Om Kedar Investments has been engaged in some mysterious buying and selling activities of the stock. His net purchases total about 38,500 shares. All purchases are close to the CMP of Rs. 550.
| Indian Terrain Fashions’ core financials (Rs in Cr) | 2014 | 2013 | 2012 |
|---|---|---|---|
| Net Sales | 232.06 | 156.70 | 140.97 |
| Operating Profit | 24.46 | 15.77 | 13.05 |
| Profit After Tax | 9.88 | 4.11 | 1.77 |
| Share Capital | 5.69 | 5.61 | 5.58 |
| Reserves | 30.49 | 20.18 | 15.28 |
| Net Worth | 36.18 | 25.79 | 20.86 |
| Loans | 61.52 | 64.49 | 63.30 |
| Operating Profit Margin (%) | 10.54 | 10.06 | 9.26 |
| Net Profit Margin (%) | 4.26 | 2.62 | 1.26 |
| Earning Per Share (Rs) | 17.36 | 7.33 | 3.17 |
What appears to have caught the attention of the savvy investors is the high growth trajectory that Indian Terrain Fashions is on. Its FY 2013-14 results were blockbuster. The sales surged 48% to Rs. 232 crores from Rs. 157 crore in FY 2012-13 and the Net Profit after tax surged to Rs. 9.88 crore as compared to Rs. 4.11 crore in the previous fiscal.
The strong growth is also being witnessed in the current period as well. In Q2FY15, Indian Terrain Fashions reported a total income from operations of Rs 103.62 crore and a net profit of Rs 6.32 crore. This compares very favourably with the corresponding figures for Q2FY14 where the total income from operations was Rs 64.16 crore and the net profit was Rs 4.18 crore.
| Indian Terrain’s Quarterly Results | |||
|---|---|---|---|
| Particulars (Rs cr) | Sep 2014 | Sep 2013 | %Chg |
| Total Income | 103.69 | 64.31 | 61.23 |
| Operating Profit | 11.94 | 7.29 | 63.79 |
| Net Profit | 6.32 | 4.18 | 51.2 |
According to a study which is referred in the annual report, the retail market is expanding at a CAGR of 15% and is expected to touch Rs. 47 trillion (US$ 782 billion) by FY2016-17.
This implies that the scope of opportunity for aggressive players like Indian Terrain Fashions, which are still small players with well-known brands and competent managements, is enormous.
Another monte carlo.
Buy “Skm eggs product” another avanti feeds 😉
Yes i too agree with you dear dinesh..
I myself holding skm …and i think that sooner or later some big investors will be buying skm eggs..
We will be reading article related to skm on this website…
Hoping for the best.
HAPPY INVESTING
Not pretty sure, what worries me is their operating margin, which is as low as 10%.
Any one has more information on the company future plans, export market etc.
Regards
Bhs
which script you talking about skm or indian terrain?
Its really a good opportunity to add IND TERRAIN for long term at cmp of 565..Thanks Arjun for the article.
…..
Hi, check Intrasoft Tech; only listed e-commerce company listed in India
hitting highs already