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Showing posts with label Kouton Retail. Show all posts
Showing posts with label Kouton Retail. Show all posts

Wednesday, August 26, 2009

Koutons Retail


Investors with a long-term perspective can buy the stock of Koutons Retail. At a price of Rs 386, the stock trades at 14.7 times its trailing four quarter earnings.

On an Enterprise Value basis, the stock trades at 1.6 times trailing sales and 1.1 times estimated FY10 sales. Though a shade more expensive, Koutons may deliver growth that is superior to its peers due to its focus on value retail, its presence outside the metros and good profit margins.

Going by numbers posted by listed retailers, consumers are loosening their purse strings in the value retail segment. Koutons offers branded, quality apparel and accessories at affordable costs, and takes to deep discounting from time to time to draw in customers. Koutons’ sales have expanded 32 per cent in FY09, placing it among the top performers in the retail space.

The bulk of retail spending in recent times has originated outside the metros and Tier I cities. Koutons has a retail footprint spanning 1,400 stores, much of it in the smaller cities. Moving into such cities ahead of competition has given it an edge by aiding brand recall.

Koutons plans to further penetrate the smaller cities this year. The company embraced the franchisee mode for expansion early on, quickly establishing a wide store network while controlling costs and capital requirements. Existing smaller stores are being expanded to family-size stores making each store address a wide customer base.

The company has a broad product portfolio, covering apparel for men, women and children, under multiple brands such as ‘Koutons’, ‘Charlie Outlaw’ and ‘Les Femme’ besides accessories, footwear under brand name ‘K2One’ and leather accessories. It plans to introduce new brands, as well as expand into innerwear, further increasing product lines. Operating margins have been maintained at a hefty 21 per cent for FY09, with the June 2009 quarter margins at 24 per cent, due to controlled raw material cost and backward integration.

It also managed to lower store rentals by 15-20 per cent for about 125 of its stores, and is negotiating on rentals for others. It shut 140 unviable stores in an effort to maintain profitability.

However, Koutons still suffers from high debt of 1.2 times equity, and interest and depreciation costs combined have cut net profit margins to 8 per cent in FY09; even so, it has performed better than most peers. The company is targeting a store count of 2,000 for this year, with a capex of Rs 60 crore.

via BL

Wednesday, October 10, 2007

Kouton Retail Listing


On 12 October 2007

Koutons Retail India will list on exchanges on Friday, 12 October 2007. It will be placed in the B1 group on BSE.

The company had fixed its initial public offer issue price at Rs 415 per share, the upper end of the Rs 370-415 price band.

At the IPO price of Rs 415, the PE multiple works out to 36.72, based on the year ended March 2007 EPS of Rs 11.3.

Koutons Retail India ended on 21 September 2007 with 45.52 times subscription. It received total bids for 16.04 crore shares as against the IPO size of 35.24 lakh shares.

The qualified institutional buyers (QIBs) category was subscribed over 66 times. The non-institutional investors category was subscribed 19 times. The retail investors category was subscribed 15 times. The employees category was subscribed 1.11 times.

Koutons Retail proposes to utilise the proceeds to set up exclusive brand outlets, establish a integrated manufacturing facility, purchase plant and machinery to increase the finishing and manufacturing capacity and improve its information and technology network.

It proposes to open 140 exclusive brand outlets for its brands ‘Koutons’ and ‘Charlie Outlaw’ in the next two years. It has been allotted approximately 13,000 square feet of land on a freehold basis by Haryana Urban Development Authority at Gurgaon.

Koutons Retail reported a net profit of Rs 34.49 lakh on sales of Rs 402.40 crore in the year ended March 2007.

Sunday, October 07, 2007

Grey Market - Reliance Power, Consolidated Construction, Kouton, Supreme Infra


Reliance Power 60 to 80 34 to 35

Dhanush Tech. 295 90 to 95 (Good comeback, IPO is now about 18 times oversubscribed, Can't guarantee the listing price though)

Koutons Retail 415 75 to 80

Consolidated Construction 510 200 to 205

Supreme Infra 108 55 to 58

Saamya Biotech 10 5 to 6

MAYTAS Infra 320 to 370 135 to 140

Circuit Systems (India) Ltd 35 5 to 6

Saturday, October 06, 2007

Grey Market - Reliance Power IPO, Saamya, Kouton, Consolidated Constructions


Reliance Power GREY MARKET PREMIUM OF 32 to 34

Dhanus Tech. 280 to 295 60 to 70

Koutons Retail 370 to 415 75 to 80

Consolidated Construction 510 170 to 180

Supreme Infra 95 to 108 55 to 58

Saamya Biotech 10 5 to 6

MAYTAS Infra 320 to 370 130 to 135

Circuit Systems (India) Ltd. 35 5 to 6

Thursday, September 27, 2007

Grey Market - Maytas, Kouton, Consolidated


Power Grid Corporation 44 to 52 22 to 23

Dhanus Tech. 280 to 295 70 to 75

Koutons Retail 370 to 415 75 to 80

Consolidated Construction 460 to 510 180 to 185

Supreme Infra 95 to 108 65 to 70

Saamya Biotech 10 6 to 7

MAYTAS Infra 320 to 370 150 to 155

Circuit Systems (India) Ltd. 35 3 to 4

Kaveri Seeds 150 to 170 12 to 14

Saturday, September 22, 2007

Grey Market - Saamya, Consolidated, Koutons


Power Grid Corporation 44 to 52 21.50 to 22

Dhanus Tech 280 to 295 95 to 98

Koutons Retail 370 to 415 75 to 80

Consolidated Construction 460 to 510 205 to 208

Supreme Infrastructure 95 to 108 65 to 67

Saamya Biotech 10 3.50 to 4

Circuit Systems 35 3.5 to 4

Kaveri Seeds 150 to 170 15 to 17

Friday, September 21, 2007

Koutons Retail India Limited


Qualified Institutional Buyers (QIBs) - 66.3762 times

Non Institutional Investors - 18.8385 times

Retail Individual Investors (RIIs) - 14.8192 times

OVERALL -45.52 times

Grey Market - Kouton, Consolidated, Circuit, Supreme


Power Grid Corporation 44 to 52 20 to 21

Dhanus Tech 280 to 295 95 to 100

Koutons Retail 370 to 415 70 to 75

Consolidated Construction 460 to 510 205 to 210

Supreme Infra 95 to 108 60 to 65

Saamya Biotech 10 3 to 4

Circuit Systems (India) Ltd. 35 3.5 to 4

Kaveri Seeds 150 to 170 5 to 7

Tata Metaliks, Indian Overseas Bank, Koutons Retail IPO Note


Tata Metaliks, Indian Overseas Bank, Koutons Retail IPO Note