Monte Carlo Fashions share price soared over 16 percent on May 30 on the back of strong Q4 financial results. At 2 pm, the stock was quoting at Rs 873 on the NSE, levels last seen in September 2022.
The stock was trading with volumes of 1.35 million shares, over 30 times the 20-day average.
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The financials
In Q4, the company reported a net profit of Rs 19.8 crore, jumping 56 percent compared to the same period the previous year. Topline stood at Rs 236.7 crore, indicating a 45.7 percent year-on-year growth. On the operating front, the company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) came in at Rs 32.3 crore, up 43.1 percent.
Monte Carlo opened a total of 47 exclusive brand outlets, surpassing its target for the year of 40 to 45. As of March 2023, the total exclusive brand outlets stood at 356, said the company.
Along with announcing the financial results, the company also said that it will be seeking shareholders' approval for increasing the borrowing limit to Rs 1,000 crore from existing Rs 500 crore.
Cautious commentary
However, the management remains cautiously optimistic about the demand situation. They expect some reductions in discretionary spending.
Among their sales channels, the multi-brand outlet is generating the highest profits, followed by exclusive brand outlets (EBO). Once the Jammu and Kashmir plant becomes operational, it is projected to contribute around Rs 200 crore to the company's revenue.
Compared to other players in the textiles industry like Raymond, Go Fashion and Trident, Monte Carlo is the cheapest stock with a price-to-earnings ratio of 13x.
Promoters stake in the company has remained steady at 73.17 percent over the past two years. Among public shareholders, ace investor Dolly Khanna holds over 2 percent stake and Vikas Khemani holds 1.35 percent stake.
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