Brandhouse Retails Limited to list on March 27, 2009

bhrl The shares of  Brandhouse Retails Limited (An entity demerged from S Kumars Nationwide) will get listed on BSE and NSE from Friday, 27th March,2009. Earlier Shareholders of S Kumars Nationwide Limited(SKNL) were allotted 1 Share of Brandhouse Retails for every 5 Shares of SKNL held by them pursuant to demerger of its Retail Business Division as a separate entity(Record date was fixed as 02 May,2008).

The issued, subscribed and paid-up equity capital of the company post arrangement comes to Rs.51.99 Crores consisting of 5,19,94,195 equity shares of Rs.10/- each fully paid up. Out of these, around 1.07 Crore Shares are under lock-in period upto April 30,2012 . The Scrip is expected to list in a price Range of Rs.13-14 and settle around Rs. 12 after initial euphoria.

The Scrip Code is 533059 and the ISIN No. is INE317J01011

Current Shareholding Pattern

Promoters                    55.7%

FII’s                             24.0%

Body Corporates         10.1%

Trusts                           6.9%

Others                          3.3%

About Brandhouse retails (BHRL)

Brand Portfolio

With retail business of Skumars in its pocket, Brandhouse retail boasts of brands like Reid & Taylor, Stephens Brothers, Carmichael House, Belmonte and Dunhill.

Financials

For Year ended 31st March,2008 the company had posted a turnover of Rs. 313 Crore against 55 crore in previous year.

Net Profit after tax stood at Rs. 13.1 Crore against 9 Lacs in previous year.

The Earnings per share stood at Rs. 2.56 Company has minimal Cash of Rs. 42.5 Lacs on its Balance sheet. It has huge Debtors of 77.5 Crore and Inventories of Rs. 63 Crore which is typical of such business.

Some of the major Expense of company includes Rentals (20 Crore), Salaries (7 Crore), Exhibitions (2 Crore), Interest on NCD (3.6 Crore) and Brokerage charges(1.5 Crore)

Recent Developments

BHRL announced its joint venture with Italy’s leading apparel brand ‘Oviesse’. This brand would address young India and provide affordable ‘fast fashion’ for men, women and kids. The total equity investment in the JV will be Rs. 161 crores over 5 years for setting up of 190 stores across Metro/Tier1/Tier2 cities. In the terms of the agreement Brandhouse will hold 62.5% of the total equity while the balance 37.5% of the equity will be in the hands of Oviesse.

Oviesse is a part of Gruppo Coin, Italy’s leading clothing retailer with a turnover of over 1.1 billion Euros. Based in Mestre, Italy, Oviesse is a benchmark in fast fashion with over 11 million customers shopping at their store every year, which amounts to a sale of over 100 million garments at a revenue of over €820 million.

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Skumars Demerger

2 comments:

narendra said...

The stock has listed at 23. Is it a right time to sell?

vishwas said...

Hello Sir
What is 1 year outlook on this stock ? Can I start purchasing if it falls to Rs.13-14? Apprciate you fundamental view on this stock. Looks like a multibagger.