Turnover to cross Rs 1,000 crores
The revenue of SP clothing is expected to exceed Rs. 00 crore. About Rs 1,000 crore with OPM consolidated by FY2023 in line with brokerage agency Sharekhan.
The firm is incorporating 3,600 spindles to carry its full capacity to 27,000 spindles. SP Apparel expects the garments margin to be 18-20% and the volume of exports to be 57-58 million in FY supported by capacity growth and recent vertical additions.
“The UK division is recovering well with its current order book of 1 7.1 million and expects to add three new customers next month. The company expects revenue from this division to double in the next 2-3 years and to keep the department’s EBITDA margin at 5-5.5%. To run a retail business, ”Sherkhan acknowledged in his report.
Attractive on valuations
“The stock is attractively valued at 7.2 times its FY2023E EPS and 5.9 times its FY2024E EPS, which is 12 times its historical historical average (and 4.5 times its FY2023E EV / EBIDTA) discounts. Concentration will act as an additional trigger.
We remain positive in the stock, “Sherkhan noted in his report.
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