We rate Archies Ltd a ‘BUY’. A renowned and leading company in the Social Expressions Industry is all set to grow with its revamped business model with its strategy of going online. Our rating underpins the company’s focus on the new model with core brand strategies in place.
The company is the leader in the Social Expression Industry: The social Expressions Industry is still unorganized in India. There are very few serious players having nationwide presence. The Company, which pioneered the concept in Indian market, is the leader with more than 50% share of the organized sector. Company continues to increase its Pan-India footprint. Presently It has 240 owned and operated retail outlets has plan to open more 90
stores in phase manner over a period of next 3 years.
Strong brand with inexpensive valuation: Archies is a strong brand with super connects between generations through its social expression products. The Market Cap to sales of the company is just ~0.30 only which is way below for leading brands. The company has reasonable financial strength and is a consistent dividend paying company.