Existing stores are 57, company intent to open 29 more stores in next 18 months. It is almost 50% more stores.
Aims to have approximately 200 to 250 stores in South India in the next six to seven years.
Growth and Outlook:
- Expects robust growth in the next two quarters due to festivals and the marriage season.
- Anticipates a 5% to 10% improvement in turnover for FY24 compared to the previous year.
- Targets revenue of INR 1,700 crores to INR 1,800 crores next year, with potential for better results than the 15% to 20% growth target.
- Expects 20%-25% growth in the present year.
- Targets a profit of INR 120 crores, with a 10% variation.
Operations and Efficiency:
- Made progress in finalizing new locations for future store openings.
- Identified locations for two new warehouses in Hyderabad and Tamil Nadu.
- Aims to improve margins by 4% to 5% by 2026 through operational efficiencies and premium format stores.
- Focusing on optimizing inventory and reducing payable days.
- Expect improved margins in H2 due to higher throughputs and improved purchase efficiency.
Store Performance:
- Same store growth in Q2 was approximately -5% due to the shift in wedding dates, but expects to achieve single-digit growth by the end of the financial year.
- Mylapore store may have lower productivity due to metro construction.
- Estimated impact of metro construction on store revenue is around INR 15 crores to INR 20 crores.
Available at 38 PE. a retailing company with long highway of growth.
Risk: Geographic concentration and single line of retail that is saree.
Disclosure: Invested and keep adding at current levels.
