Cantabilretail
Cantabil Retail India Ltd || Investment stock Pick for long TermAbout Company:-
Cantabil Retail India Ltd was incorporated in 1989 and started its readymade garments manufacturing and retailing business in the year 2000.
Market Cap
₹ 1,652 Cr.
Current Price
₹ 1,011
High / Low
₹ 1,595 / 800
Stock P/E
28.2
Book Value
₹ 111
Dividend Yield
0.25 %
ROCE
21.8 %
ROE
26.8 %
Face Value
₹ 10.0
Debt
₹ 300 Cr.
EPS
₹ 35.8
PEG Ratio
0.50
Promoter holding
75.0 %
Intrinsic Value
₹ 539
Pledged percentage
0.00 %
EVEBITDA
12.1
PROS
Company is expected to give good quarter
Company has delivered good profit growth of 56.1% CAGR over last 5 years
Well Stock is good and trading at discounted price, it can give you huge returns as business model is really futuristic, let me tell you more about this ticker like product portfolio, online revenue, Expansion, focus etc..
Product Portfolio
Men’s Wear (86%) - Formals, Casuals, Ultra Casuals, Woollen, Knitwear
Women’s Wear (9%) - Shirts, Tops, Leggings, Kurtas, Kurtis, Capri, Pants, Jeans
Kids Wear (2%) - Shirts, T-shirts, denim, trousers, Culottes, dresses, tops, jeggings, shorts
Accessories (3%) - Innerwear, Belts, Socks, Ties, Handkerchief, Deo, etc.
Online Revenues
As of now, online sales generate 1% of the company's total revenue and the Company expects online business to grow to nearly 5% in the next 3-4 years. But the Co. is focused on expanding via brick-and-mortar stores especially in the tier 2 and tier 3 cities and towns.
Manufacturing Capacity
The company has established a 1.5 lakh sq.ft. state of an art manufacturing facility in Bahadurgarh, Haryana with a capacity to produce 10 Lakh garment pcs./p.a viz, equipped with best brand machines from JUKI, Durkopp, Brother, Ngai Shing, Kansai, Pfaff, Maier, Siruba, Sako and latest finishing equipment using hot and cold steam foam finishers from Veit and Macpi.
Expansion
In FY22, Company added 58 new stores and invested in building a new multi-floor warehousing facility cum corporate office to make it hassle-free and improve controls over inventory and warehousing management significantly.
Distribution Network
The company sells its products under its brand Cantabil, Kenaston, Crozo, and Lil Potatoes through 378 Showrooms/ Stores and 414 Outlets in 18 states.
Asset Light Model
The company operates with an asset-light model wherein only about 1/3rd of the apparel are manufactured in-house at its fully integrated facility in Bahadurgarh. And sources another 1/3rd of its requirements from dedicated job workers and the balance ~1/3rd is purchased on a FOB basis directly from manufacturers.
Focus
The company is focused on expanding via brick-and-mortar stores in the country especially targeting the tier 2 and tier 3 cities and towns where it gets to take advantage of the first mover benefit.
I have done my analysis about this ticker. Stock is looking attractive at these levels. So if anyone wants to go long can go for target of 1600 and keep stop loss at 800,,but this is kind of stock where you can create wealth in long term.
Disclaimer:- I already have investment in this from down levels and i am holding this for long term.
If anyone likes my work then please like, follow and comment.
Thankyou:-))
CANTABIL breakout1. Buy or Sell at your own risk
2. Don't risk more than 1%-2% of your capital as stop loss
3. Position Size formula:- Stop Loss Amount/(Buy Price-Initial Stop Loss Price)
4. Sell on initial stop loss hit or daily RSI closing below 40
5. Some other ways to sell stocks can be
a. 25% or 50% up in three weeks or less
b. Weekly tailing tops with high volume
c. Exhaustion gaps
d. Heavy daily volume without further upside
e. Largest one day price drop
after a consolidation in 7th february 2022, NSE:CANTABIL gave a breakout on 1st April 2022. This breakout came on the backdrop of quarterly sales growth of 35%, quarter profit growth of 134%, TTM sales growth of 32% and TTM profit growth of 436%. It is a buy with a stop just below Rs.925.
Other fundamentals:
1. CANTABIL caters to the middle class with over 300 stores across India. It markets its products under the following brands:
CROZO is an exclusive brand for women.
Lil’ Potatoes is an exclusive brand for kids from 3 - 14 years with high fabric quality and a soft hand feel.
KANESTON is present in the hosiery industries and deals in men’s accessories like innerwear, ties, deo, etc.
2. It has 378 Exclusive Brand Outlets.
3. It entered the e-commerce space through Flipkart, Amazon, etc. in FY20.
4. Its target is to reach over 650 stores with a target turnover of Rs.1000 crores by 2025 by providing the best brand mix.
5. Debtor days improved from 23 in March 2019 to 6 in March 2021.
6. Promoter holdings increased from 74.23 in September 2020 to 74.81 in December 2021.
Target 1 (37%) achieved in Cantabil Retail. Target 2 is ON...This is follow-up on Cantabil Retail India. Can check link to related ideas.
Target 1 achieved. More than 37%. Target 2 is ON.
Chart is self explanatory. Entry, Targets and Trailing Stop Loss are mentioned on the chart.
Disclaimer: This is for demonstration and educational purpose only. This is not buying or selling recommendations. I am not SEBI registered. Please consult your financial advisor before taking any trade.
Breakout in Cantabil Retail India...Chart is self explanatory. Entry, Targets and Stop Loss are mentioned on the chart.
Disclaimer: This is for demonstration and educational purpose only. This is not buying or selling recommendations. I am not SEBI registered. Please consult your financial advisor before taking any trade.