Khadim India Ltd. share price target

Valuation: As the stock is not under our coverage, we do not offer a valuation.

Khadim's results were below our estimate in Q4FY19. The revenue grew 5.2% - below the management expectation, due to (1) 4% decline in retail business (2) a deceleration in SSSG, and (3) absence of price hikes in the quarter. COCO stores SSG stood at +2.5% while franchise business exhibited -5% de-growth in Q4FY19 due to decline in footfalls. We have reduced our EPS estimates from `26.7 and `30.1 for FY20E and FY21E, to `14.6 and `17.2, respectively. We believe the company will take more time to recover from the deceleration in volume growth. Consequently, we...

Khadim's Q2FY19 revenues beat our estimates, but EBITDA and APAT came below our estimate. The revenue growth in retail business was at 7% below the company's target of 10-14% primarily due to (1) decline in footfalls (25-30% decline in H1FY19) (2) de-growth in SSSG at 2% and (3) delay in price hikes. The distribution business posted 32% sales growth but GM were impacted due to significant delay in price pass on. The company gained institutional contract from UP government worth ` 350mn which helped the top-line to grow. Going ahead, we believe that the company would regain its lost momentum with (1) Penetration into new geographies...

We recently met the management of Khadim to understand its business model and future prospects. Khadim's, incorporated in 1981, is one of the leading footwear brands in India, and has positioned itself in affordable fashion', catering to the entire family for all occasions. Over the years, Khadim has adopted an asset light business model to operate its exclusive retail stores with minimal capex requirements. As on December 30, 2017, the company operated 738 retail stores of which majority of the stores are franchisee operated stores (76%-559 stores). Besides its retail...

Improvement in Revenue/Capital Employed ratio, operating margins, positive operating leverage with higher asset turnover coupled with limited capex in store expansion, at existing capacities and machinery supply at contracted facilities leads to positive free cash flows and higher return ratios in coming years . Moreover, with GST implementation organized footwear segment is expected to grow better than the current growth. Asset light model, reduction in Debt, good set of numbers, large distribution network &...

Khadim India Limited is Kolkata based and the second largest footwear retailer (in terms of number of exclusive retail stores) in India with a twopronged focus on retail and distribution of footwear. Company operates exclusive retail stores (contributes ~70% of its net revenue) under the 'Khadim's' brand with major presence in East India and is one of the top three players in South India (FY2016). KIL has manufacturing facilities at Panpur and Kasba (in West Bengal) and 4 distribution centers across India. Khadim's both business verticals complement each other, as each of them predominantly own customer base, sales channels and product range....

IPO NOTE

Khadim India Ltd. (KIL) is one of the leading footwear brands in India with a market share of around 45% in the organized retail market in East India and a market share of 15-20% in South India. The public issue is a combination of OFS and fresh issue. The company will not receive any proceeds from the OFS. Of the net proceeds from the fresh issue, around Rs. 400mn will be utilized for the prepayment or repayment of all or a portion of term loan and...

Khadim India Ltd. (KIL) is one of the leading footwear brands in India, with a two-pronged focus on retail and distribution of footwear. It is the second largest footwear retailer in India in terms of number of exclusive retail stores operating under the Khadim's' brand, with the largest presence in East India and one of the top three players in South India, in fiscal 2016. KIL also had the largest footwear retail franchisee network in India in fiscal 2016. Company is selling its products under flagship brand Khadim's and nine home grown sub-brands. KIL provides affordable fashion across various price points for the...

Issue Open: Nov 02 - Nov 06, 2017 Issue Open: Nov 02 - Nov 06, 2017, Price Band: Rs. 745 - 750, Issue Size: *7,240,760 Equity Shares (Including Fresh issue of *666,667 eq sh + Offer for sale of 6,574,093 eq sh), Offer Size: Rs.539.44 crs 543.05 crs

Khadim India Limited is one of the leading footwear brands in India, with a two-pronged focus on retail and distribution of footwear. It is second largest footwear retailer in India in terms of number of exclusive retail stores operating under the Khadim's' brand, with the largest presence in East India and one of the top three players in South India. It also has largest footwear retail franchise network in India. The core business objective of the company is to create an identity as an affordable fashion' brand, catering to the entire family for all occasions. As of Mar 2017, Khadim India Ltd operates in 23 states and 1 union territory in India. The company is led by promoter, CMD, Siddhartha Roy Burman with 34 years of...

Established in 1981, Khadim Indian Ltd (KIL), a leading footwear brand has emerged as the third largest retailer in the Indian market. The company has a strong presence in eastern India and has positioned itself as an affordable brand. It has 853 branded exclusive retail stores in 23 states and one Union Territory. KIL has manufacturing f..

Incorporated in 1981, Khadim India Limited is Kolkata based second largest footwear retailer in India. The company operates exclusive retail stores under the 'Khadims' brand with major presence in East India and operates through two business verticals, retail and distribution. The company has over 829 'Khadims' branded exclusive retail stores. Out of this, 167 are company owned and operated stores and remaining are franchisee operated stores. The company's retail business constitutes over 70% of its net revenue. Over 85% of products sold through its retail stores are manufactured by outsourced vendors. It has two...

Khadim India (Khadim's), incorporated in 1981, is one of the leading footwear brands in India, positioned itself as an affordable fashion', catering to the entire family for all occasions. With 853 exclusive branded outlets (as on June 30, 2017), Khadim has the second largest number of retail stores (after Bata) with largest presence in East India and one of the top three players in South India. Bedside's its retail stores; Khadim caters to various multi branded outlets (MBOs) through its strong distribution business model, consisting of 377 distributors. Apart from its flagship...

Khadim India Ltd. (KIL) is one of the leading fashion footwear brands in India, with a two-pronged focus on retail and distribution of footwear. This Kolkata based company was founded in 1965 and was incorporated in 1981 and for many years it was involved in wholesaling and distribution of basic utility footwear. In 1993 Khadim's entered into retailing and emerged as the second largest footwear retailer in India in terms of number of exclusive retail stores. It has the largest presence in East India and is one of the top three players in South India. Company's core business objective is Fashion for Everyone' and it has...