Khadim India – one of the leading footwear brands in India (with a two-pronged focus on retail and distribution of footwear) is planning to raise INR 543.05 crore (50 crore of Fresh Issue + 493.05 crore of OFS) via initial public offer (IPO)
Khadim India – Company profile
- Incorporated on 3rd December 1981 as S.N. Footwear Industries Private Limited, Khadim India Limited is Kolkata based second largest footwear retailer in India. (From 1993, with its foray into retailing, Khadim’s emerged as a popular fashion footwear brand, as also one of the leading organized footwear retailers in India)
- Company operates exclusive retail stores under the Khadim’s brand with major presence in East India.
Working Area
Khadim India is the 2nd 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 3 players in South India, in fiscal 2016. It also had the largest footwear retail franchise network in India in fiscal 2016.
Khadim’s Business Verticals:
Retail:
- The retail business operates through its exclusive retail stores catering to middle and upper middle-income consumers in large cities.
- Company has over 829 Khadim’s branded exclusive retail stores. Out of this, 167 are company owned and operated stores and remaining are franchisee operated stores.
- 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.
Distribution:
- The distribution business operates through a wide network of distributors catering to lower and middle-income consumers. Company have a network of 357 distributors.
- The distribution business constituted over 20% of its net revenue. A large portion product sold through distributors are manufactured by the company at its own manufacturing facilities and through contract manufacturing facilities.
Manufacturing Facilities
The Company have two owned manufacturing facilities and two outsourced manufacturing facilities.
Company Promoters
- Siddhartha Roy Burman
- Knightsville Private Limited
IPO Opening / Closing Dates & Listing
IPO Details – Price, Minimum Bid and Other
Financial Performance
Revenues
The Company shows steady revenue growth in recent years. Top-line has been increasing regularly for the last 5 years and jumped from INR 425.70 crore in FY 2013 to INR 625.50 crore for the period ended FY 2017.
Profits
Though the company has shown steady growth in revenue, the company has also registered impressive profits in these 5 years. Starting from INR 8.90 crore of profits in FY2013, the company’s earnings improved to INR 30.80 crore for the period ended FY 2017.
CONCLUSION –
Considering company’s valuation and financial parameters, FinBlab recommends NEUTRAL ratings on Khadim India Ltd IPO for the time being.
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