Provogue (India)  Ltd
Realty
FV – Rs 1; 52wks H/L –9.99/2.90; TTQ – 65 K; CMP – Rs 5 (As On October 19th 2016; 15.00);                               

   Market Cap – Rs 116 Crs

Consolidated Financials and Valuations for FY16 (Amt in Rs Crs unless specified)

Standalone Financials and Valuations for Q1 FY17

• Promoter holding has decreased considerably from 41.25% in June,16 to 20.21 as on 17 August,16

 Valuation Parameters:

1. Long Term Debt to Equity – 0.2
2. ROE % – (67)
3. Market Cap/Sales – 0.22

During the previous year, the Company has received part of insurance claim amounting to Rs.10.42 Crs against loss due to a major fire occurred in February 2014 at one of the Company’s Plant located at Daman.

Cash-strapped Provogue shuts over 60 stores in 1 year

http://www.financialexpress.com/industry/companies/cash-strapped-provogue-shuts-over-60-stores-in-1-year/233048/

The company on 9^th Aug, 2016 allotted 119024732 shares of Rs.1 per share to SDR lenders at Rs.7.66 per share (Rs.91.17 Crs) which entitles them to hold 51% of post allotment paid up share capital of the company.

In October 2008 the stock split from Rs.10 to Rs.2 and further to Rs.1

1 —– 10

5 —— 2

In October it made a high of Rs.1460 of Face value Rs.10 each. Rs.1460 in 2008 of 1 share each comes to Rs.50 today for 10 shares of face value Rs.1 each.

The old Capital comprised of 14 % which has increased to 25% respectively.

The debt of Rs.305 Crs will come down to Rs. 214 Crs due to SDR issue to lenders which amounted to Rs.91 Crs.

Overview:

• Provogue (India) Ltd is engaged in the business of manufacturing, trading of garments, fashion accessories, textile products and related materials.
• The Company’s segments include Domestic and Exports.
• The Company offers shirts, t-shirts, jackets, suits and blazers, sweaters and sweatshirts, jeans, trousers and chinos, shorts, socks, sunglasses, and shoes and trainers for men, and dresses, shirts and blouses, t-shirts and knitted tops, and fragrances for women.
• The Company is a manufacturer and retailer of apparel under the brand Provogue.
• The Company retails its products through Provogue stores, shop-in-shop outlets in national chain stores, and multi brand outlets.
• The Company operates under 4 business units, namely — Fashion & Lifestyle, FMCG Personal Care, Institutional Sales and Provogue.com.
• The Company has 14 subsidiary companies including step-down subsidiaries and 2 foreign subsidiaries.

Significant valuations attached to ‘Prozone’

Having significant experience in the retail business, Provogue is also leveraging its skill set by participating in the development of the high growth, organized retail infrastructure sector through its subsidiary Prozone Enterprises Pvt Ltd. Prozone intends to tap the early mover advantage through focus on unserviced consumer base in Tier II cities.

Management:

• Mr. Nikhil Chaturvedi – MD
• Mr. Deep Gupta – CFO

Bulk Deals:

Major Non-Promoter Holdings:

Snapshot of Prices since 2005 :

Consolidated Financial Trends (In Rs. Crs) :

YOY % :

Risks:

• Too much dependency on brand ‘Provogue’: Although the company has created a very strong brand for itself, any loss in brand equity or damage will affect the business of the organization.
• Delay in planned expansion: Any delay in expansion of stores across formats could impact our estimates and would be a downside risk to our recommendation.
• Delay in project completion in Prozone: Any delay in completion of projects in reatil segment might correspondingly impact the hotel and commercial development as well as further phases of development. This may have a negative impact on the valuation of Prozone.