Fundamental Analysis
MONTE CARLO FASHIONS LTD.
Ticker: 538836
BUY: Rs 572.75
Target: Rs 650
Monte Carlo Fashions is engaged in the manufacturing as well as trading of designer woollen & cotton readymade apparel and other products under its brand name ‘Monte Carlo’, which has also been recognised as a ‘Superbrand’. The standalone quarterly financials state that the company recorded a 2.4 times rally in the net sales and operating income from Rs 98.25 crore in Q2FY21 to Rs 238.29 crore in Q2FY22. Consequentially, operating profit grew three-fold i.e. from Rs 19.46 crore in Q2FY21 to Rs 58.32 crore in Q2FY22. The net profit zoomed by approximately 7.6 times from Rs 4.42 crore in Q2FY21 to Rs 33.91 crore in Q2FY22. As of September 2021, the company has a longterm borrowing of a mere Rs 9.5 crore. Meanwhile, cash on the balance sheet stands at Rs 197.8 crore. The company possesses a successful brand diversified across woollen, cotton, kids & home furnishing along with an extensive distribution network present across India. Hence, we recommend BUY.