Monte Carlo Fashions shares gained more than 4 percent on January 11 after the company clocked 12 percent revenue growth during the quarter ended December FY23 (Q3FY23).
The woollen knitted apparel maker recorded revenue growth of 12 percent in Q3FY23 and 19 percent growth for the nine months period ended December FY23, compared to the year-ago period, driven by pent-up demand.
"The quarterly sales have been the best for the company on the back of substantial brand equity among consumers, the latest fashion products and superior quality aided by solid end-of-season sales and encouraging festive season across India," Monte Carlo said.
The company maintains its yearly growth guidance of 20-25 percent as mentioned earlier.
During the quarter, Monte Carlo said it continued with its strategy of strengthening its retail presence in India by opening 13 new EBOs (exclusive brand outlets) during Q3FY23, out of which seven EBOs were opened in the northern region, two in the central region and four EBOs in the eastern region.
With this, the total number of EBOs has reached approximately 347 across 20 states and four union territories. The company maintains its yearly growth guidance of opening 40-45 new EBOs.
The company said as most of its net revenue from franchises, EBOs and MBOs (multi-brand outlets) are sold on pre-order or outright, inventory risk is minimised, consequently helping them remain insulated from hazard sales in the branded apparel business.
Despite the higher raw material prices, the company said it has strategically tackled the volatility by optimising the product mix, passing on the costs to consumers and rationalising overheads.
The stock closed at Rs 699, up 4 percent on the NSE. Technically, it has formed a long bullish candle which resembles a Bullish Engulfing kind of pattern formation on the daily charts, with healthy volumes. Further, there was a break out of the horizontal resistance trend line adjoining multiple touch points - November 17, November 18, 2022, and January 9, 2023.