[stock_ticker symbols=”LOVABLE” show=”name” static=”0″ nolink=”” duplicate=”1″ class=””]

05-Sep-2016 : Lovable Lingerie is an Indian manufacturer of women’s innerwear products. Primarily the company markets two products i.e. Lovable and Daisy Dee. While Lovable caters to the premium segment, Daisy Dee is meant for mid income group.

Loavble’s main advantage is owing to its presence in the fast growing women’s innerwear segment. The women’s innerwear market contributes around 60 percent of the total innerwear market. In the women’s innerwear, the mid premium segment makes up 52 percent of the market and is expected to grow the fastest, at a CAGR of 22 percent over the next five years.

Of late, the company has entered into a distributorship agreement with Hanes Italy S.r.L and acquired non-exclusive third party right to import, distribute, promote and sell certain of its products under Lovable trademark. These products being in the super premium segment of innerwear, we believe that the company can notch up market share.
The company is making good effort on brand building. The investment in non-television and digital media was significantly stepped up during the last financial year. The company is also well placed to make use of the emerging e-commerce business. It has tied up with various leading online retailers to increase the reach of the
product to entire country.

For the financial year 2015-16, the company recorded a net turnover of Rs 19,676.83 lakhs as against Rs 17,249.38 lakhs for the financial year 2014-15, registering an increase of 14.07%. The net profit before tax stood at Rs 3237.24 lakhs as against Rs 2694.08 lakhs over last year and profit after tax stood at Rs 2317.54 lakhs for the year as against Rs 1971.59 lakhs in the last year.

Lovable’s total debt is only 2.21 crore, which means that it has a healthy debt to equity ratio of 0.01 ( as of last financial year).

After making a low of Rs 205, currently it is hovering at around Rs 250. Thus it is being traded at 18.5 based on twelve month’s trailing EPS. This is one of the lowest in the innerwear segment. We believe that the company is a major benefiter of the recent pay revision of the central government and stable economic growth of India going forward. The robust balance sheet will help it to improve its ROE. We set a target Rs 328 for the next twelve months.

NSE Code : LOVABLE
BSE Code : 533343

Disclaimer : This report is a view of Rover Equity Solution (www.roverequity.com) and not a solicitation for purchase or sale. If anyone is interested to trade in the same stock, he\she is advised to do it at his\her own risk. We are not in any way responsible for any loss incurred. We are also not responsible for any loss or damage that may arise from any inadvertent error in the data provided in the report.

[powr-comments id=9fc3dc24_1500369543516]