Revenues showed healthy growth, while margins remained steady
At 18x FY27E earnings, CRIL offers an attractive valuation with strong operating leverage and improving demand visibility
With the transition from unorganised to organised retail in affordable fashion, Cantabil Retail is well-positioned to leverage its extensive national presence and expanding digital footprint
The company plans to build a multi-brand portfolio in the fashion space, which presents huge growth opportunities
The company plans to aggressively scale up business across formats, and with its current presence in only 155 cities, there is a huge growth potential
Cantabil Retail is well placed to benefit from robust demand, aggressive store expansion, and category extension in the second half of FY24, according to Nuvama Institutional Equities.
CRIL is aggressively expanding its reach and boosting same-store sales growth (SSSG) as it plans to double revenues by FY26.
The acquisition paves the way for ABFRL to have a comprehensive play in ethnic wear and aligns with the management objective of being a leading player in the space.
The first quarter of the financial year 2022 was a washout for retailers, however, with the ebbing of the second wave, the footfalls are back in the stores, they say.