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CREDO BRANDS MARKETING LTD IPO

IPO Details

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53 Shares
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₹ 266 – 280
₹ Up to 549.78 Cr

Issue timeline

  • -
  • 22-Dec-2023
  • 26-Dec-2023
  • 26-Dec-2023
  • 27-Dec-2023

Subscription Status

Shareholder -
Qualified Institutional Buyers -
Non-Institutional Investor -
Retail Individual Investor -
Employee -
Total -

About Company

- Engaged in the retail sale of garments and accessories
- Their brand “Mufti” was launched by their Promoter, Kamal Khushlani, 25 years ago with a vision to redefine menswear. The product offerings range from shirts to t-shirts to jeans to chinos, which caters to all year-round clothing
- Their products are available through a pan-India multichannel distribution network comprising of their exclusive brand outlets, large format stores and multi-brand outlets, as well as online channels comprising of their website and other e-commerce marketplaces

Strengths & Risks

Strengths (3)

Strong brand equity with presence across categories
Launched in the year 1998, their brand “Mufti” is a recognized brand with 25 years of presence in India. They provide a wide range of products for multiple occasions in a customer’s life, with our product offerings ranging from shirts to t-shirts to jeans to chinos to jackets, which caters to all year-round clothing with a prominent focus on casual wear (Source: Company DRHP)

Risks (2)

Vulnerable to variations in demand and changes in consumer preferences
Since they specifically cater to the market of men’s casual western wear, which is a segment of the vast apparel market, if their customers are not satisfied with their products, or there is lack of customer demand for products, it may adversely affect the business, financial conditions, and results of operations. (Source: Company DRHP)

  • Strong brand equity with presence across categories
    Launched in the year 1998, their brand “Mufti” is a recognized brand with 25 years of presence in India. They provide a wide range of products for multiple occasions in a customer’s life, with our product offerings ranging from shirts to t-shirts to jeans to chinos to jackets, which caters to all year-round clothing with a prominent focus on casual wear (Source: Company DRHP)

  • Scalable asset light model
    As a wardrobe solutions provider for multiple occasions in a customer’s life, they focus on designing their products in line with global fashion trends in casual wear. They outsource the manufacturing operations, while all aspects of design are managed in-house. This helps them to maintain an asset-light model with respect to plant, property, and equipment.(Source: Company DRHP)

  • Financially stable business model
    They have organically grown their operations and have demonstrated an increase in revenues and profitability, other than in Fiscal 2021 when the operations were impacted on account of COVID-19. Their revenue from operations grew by 46.02% from ₹ 3,411.72 million in Fiscal 2022 to ₹ 4,981.82 million in Fiscal 2023. (Source: Company DRHP)

  • Vulnerable to variations in demand and changes in consumer preferences
    Since they specifically cater to the market of men’s casual western wear, which is a segment of the vast apparel market, if their customers are not satisfied with their products, or there is lack of customer demand for products, it may adversely affect the business, financial conditions, and results of operations. (Source: Company DRHP)

  • Operate in highly competitive markets in each of their product segments in both offline and online channels
    They face competition from various international, national, regional and niche brands and unorganized players in the men’s casual western wear industry who are present in their product segments. They believe that the men’s western wear industry is a highly unorganized market, and compete with several branded and non-branded players and local retailers’ brands. Their main competitors, in the similar price brackets, are brands such as Jack & Jones, Levi’s, Pepe Jeans U.S. Polo Assn. and Spykar(Source: Technopak report, Company DRHP)

Financials

Net Worth
Total Income
Total Borrowings
Profit After Tax
Earnings Per Share

Industry Overview

- Transition from Need based to Lifestyle Based purchase: The apparel market is seeing a change from need-based purchase to more of lifestyle-based purchase. Consumers today with more disposable income in their hands, are more aware of growing trends, latest fashion etc. This has resulted into creation of more occasion specific categories apart from the traditional Wedding & Festival Wear. Industry players like Mufti, Peter England, Louis Philip have expanded their product lines to retain their customers from going to other brands for their occasion specific needs.
- India Apparel Market Size & Level of Organization: The Apparel market size in India was valued at INR 5,476 Bn (USD 68.45 Bn) in FY 2023 and projected to grow at a CAGR of ~18% between FY 2023 and FY 2027 to reach INR 10,683 Bn (USD 133.5 Bn) by FY 2027 on the back of factors like higher brand consciousness, increasing digitization, greater purchasing power and increasing urbanization. (Source: Company DRHP)

vishal-mega-mart IPO

Credo Brands Marketing Ltd IPO

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53 Shares

Subscription Status

Shareholder -
Qualified Institutional Buyers -
Non-Institutional Investor -
Retail Individual Investor -
Employee -
Total -

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*The financials mentioned above are sourced from DRHP/ RHP documents.

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