Published: 29th Aug 2024
By: Value Research
Baazar Style Retail is a budget fashion retailer, primarily catering to customers in the below Rs 1,000-value segment. It also sells cosmetics, fashion jewellery, and homeware products.
Total IPO size (Rs cr) 835 Offer for sale (Rs cr) 687 Fresh issue (Rs cr) 148 Price band (Rs) 370-389 Subscription dates August 30-September 3, 2024 Purpose of issue Repayment of borrowings
M-cap (Rs cr) 2903 Net worth (Rs cr) 363 Promoter holding (%) 46.5 Price/earnings ratio (P/E) 132.3 Price/book ratio (P/B) 8
Key financials 2Y growth (% pa) FY24* FY23 FY22 Revenue (Rs cr) 32.9 973 788 551 **EBIT (Rs cr) 137.4 33 11 -9 PAT (Rs cr) 117.7 22 5 -8 Net worth (Rs cr) 215 194 144 Total debt (Rs cr) 657 490 409
*FY24 numbers are on a consolidated basis. ** Earnings before interest and tax (EBIT) is adjusted for rental payments PAT is profit after tax
Ratios 3Y average (%) FY24* FY23 FY22 ROE (%) 2.3 10.7 3 -6.9 ROCE (%) 12.9 18.4 13.8 6.6 EBIT margin (%) 1.1 3.4 1.4 -1.6
*FY24 numbers are on a consolidated basis
The company’s prospects are backed by strong sectoral tailwinds, aided by the rapid shift in consumer preference towards organised retail players, especially in the budget fashion segment.
The company’s stores are strategically located in the same or nearby locations. This cluster model helps it manage its inventory efficiently.
The sector it operates in faces stiff competition. Its concentrated operations and high inventory days against peers are other key risks. Our full story covers them in detail. Read from the link below.