ASHAPURA INTIMATE FASHION

This company manufactures intimate –loungewear garments, under the brand name of Valentine. It has chalked itself an aggressive growth plan and seems to be on a store opening spree; its target is 200 Valentine loungewear retail showrooms all over India within 3 years on franchise basis. The company has MOUs with online shopping sites like Myntra, Jabong/ Home Shop 18 and own website. The company had gone public in March 2013, offering shares at Rs.40/share and was listed on the SME exchange of BSE. On 2nd Dec’15 the company got listed on the NSE and BSE. Today, the stock is traded at Rs.240 levels, indicating a superb gain since its listing in 2013.

On the financial front, the company did not do too well in Q3FY16. Net sales for the quarter slipped 315 (YoY) at Rs.36 crore. It reduced costs by 32% but that did not help shore up the EBITDA, which was down 25% at Rs.6 crore. But margins saw an improvement, up from 14.8% to 16.2%. Net profit was down 33% at Rs.24 crore.  It was only this Q3 which was not good as its 9MFY16 net profit a Rs.90 crore has already surpassed FY15 net profit of Rs.87 crore. With one more quarter to go, clearly, it will end current fiscal on a much better note. Debt is at around Rs.50 crore and market cap is at Rs.466 crore.