Fundamentals

ARVIND SMARTSPACES 

Ticker : 539301 BUY: Rs 201.70
Target: Rs 222 

The company is engaged in real estate and infrastructure development business activities. Its major operations in the residential segment are carried out in Ahmedabad and Bangalore. On the financial front, in Q4FY18, its consolidated revenue was up by 8.5 percent YoY, but the net profit was down by 8.9 percent due to higher finance costs. For FY18, the consolidated revenue rose by 27.4 percent YoY. The EBITDA for the year increased by 44.4 percent YoY and PAT jumped by 45 percent to Rs 31.4 crore from Rs 21.6 crore. The company has delivered six projects so far of 2.3 mn sq.ft. and currently it has eight projects under construction covering an area of 8 mn sq.ft. which are expected to be completed in next 2-3 years. It also plans to foray into B+ tier cities like Pune and Jaipur. Thus, we recommend it as a BUY.

KHADIM INDIA 

Ticker : 540775 BUY: Rs 785
Target: Rs 850 

The company is one of the leading footwear brands in India having largest presence in East India. It operates through two business verticals, retail and distribution. For the retail segment, it follows asset light model by adopting the franchisee route for opening new stores. By the end of Dec. 2017, it had 738 retail stores in operation. The company is planning extensive expansion of retail stores by foraying into new geographies and adding 80 stores annually through the franchisee route. Also, it has 9 sub-brands under its retail segment. Under the distribution segment, it manufactures range of products at its two manufacturing facilities and caters to multi-branded outlets with 440 distributors. This segment has grown at a CAGR of 42.04 percent over FY15- 17. Considering its strong business model and extensive distribution network, we recommend it as a BUY.