Fundamental Analysis

CANTABIL RETAIL INDIA LTD.
 
Ticker : 533267
BUY: Rs 672.70
Target: Rs 750

Cantabil Retail India Ltd is in the business of designing, manufacturing, branding, and retailing of apparels under the brand name of CANTABIL. Analysing the standalone quarterly results, the company recorded a robust increase of 84.78 per cent in net sales and operating income, which stood at Rs 89.61 crore for Q2FY22 as compared to the net sales & operating income of Rs 48.5 crore reported for Q2FY21. The operating profit for the quarter was recorded at Rs 27.39 crore in Q2FY22 as compared to the operating loss of Rs 14.55 crore posted in Q2FY21, up by 88.2 per cent. The company reported net profit of Rs 7.77 crore in Q1FY22 versus the net loss of Rs 0.69 crore recorded in Q2FY21. The company is mainly focussed on tapping the vast middle-class population of the country, with rightly-planned decision to expand as well as create brand visibility in tier 2 & tier 3 cities and penetrate further in the tier 1 cities. Hence, we recommend BUY.