Reviews

RUPA & COMPANY LTD.

Ticker : 533552 
FV: Rs. 1 
52-Week H/L: Rs. 460/246.65



We had recommended Rupa & Company in vol. 35, no. 13, Jan 21, 2019 dated Nov 5, 2018 when it was trading at Rs 347.90. We had recommended the stock owing to improving margins and successful operations of international brands. Rupa & Company Limited is a knitwear innerwear product company. On the financial front, the company posted net sales of of Rs 391.70 crore for Q4FY19 as against Rs 399.05 crore posted in the same quarter of the previous year. The PBIDT shrunk by 14 per cent to Rs 57.88 crore on a YoY basis in Q4FY19. The PAT too fell by 18 per cent YoY to Rs 32.47 crore in Q4FY19. The sales of licensed international brands FCUK and Fruit of the Loom grew 50 per cent YoY in FY19. The company has received an approval to set up and incorporate a wholly-owned subsidiary company in Bangladesh. The licensed international brands FCUK and Fruit of the Loom sales grew 50 per cent YoY in FY19. Keeping these points in mind, we recommend a HOLD.