Accumulate Monte Carlo; target of Rs 717: Mehta Equities

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26 Aug, 2025 12:21

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Mehta Equities' research report on Monte Carlo Fashions (MCFL)

"Monte Carlo Fashions (MCFL) is the leading apparel brand in India from the Oswals of Ludhiana, known for OWM; especially famous for exclusive woolen brand 'Monte Carlo'. Company cater to the premium and mid-premium branded apparel segment for men, women and kids, offering a comprehensive line of woolen, cotton and cotton-blended knitted and woven apparel and home furnishings through 'Monte Carlo Exclusive Brand Outlets' and multi brand outlets, including a network of national chain stores under the 'Monte Carlo' brand."

"We believe MCFL is well placed and well connected with customers belonging to both the mass and premium categories. Considering the superior brand recall coupled with strong distribution network and focus on nonsweater segment to new geographies, we expect 15%-20% topline growth going forward. Monte Carlo has also drawn up an aggressive store roll out plan for the same which will see the company's store count grow to 275 from 192 at present. Based on our discussions with the Management, we believe the company will soon come out with a dividend distribution policy for optimum utilization of its cash flows. On the valuation parse the stock is trading at 14x FY16E EPS of Rs 37 & 12x FY17E EPS of Rs 45 when compared to its peers which are trading at 25x-30x. Hence, we recommend investors to "Accumulate" with a Target price of Rs 717 with a medium to long term investment horizon", says Mehta Equities research report.

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