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|
|Profit After Tax||9.88||4.11||1.77|
|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|
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.