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Sharekhan bullish on Lovable Lingerie business
The 45.5 lakh shares initial public offering of Lovable Lingerie - women's innerwear manufacturer - has opened for subscription. Sharekhan is bullish on company's business.
The 45.5 lakh shares initial public offering of Lovable Lingerie - women's innerwear manufacturer - has opened for subscription. Sharekhan is bullish on company's business, considering strong brands, focused strategy and robust financials as well as the vast canvas of opportunity in this space, according to its report dated March 7.
Lovable plans to raise up to Rs 93.28 crore via issue of 45.5 lakh equity shares at higher end of price band of Rs 195-205 a share, which are proposed to be used for a manufacturing facility, brand promotion and retail expansion.
The report says, "Loveable Lingerie is present in the fast growing branded innerwear segment that offers a significant growth opportunity owing to the low penetration of branded products, the rising income of Indians and the growing trend of urbanisation. The company's strong brands, focused strategy and robust financials as well as the vast canvas of opportunity in this space make us bullish on its business."
"Further, at the upper end of the stated price band of Rs 195-205, the stock is available at 20.3x its annualised M9FY2011 earnings and 18.5x FY2012 rough profit estimate of Rs 18.4 crore. That is almost a 40% discount to the only other listed innerwear player, Page Industries (exclusive Jockey licensee), which is trading at 26x its FY2012 earnings per share (EPS) estimate of Rs 59," according to report.
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