Wednesday, January 12, 2011

MUDRA LIFESTYLE LTD- BUY





Mudra Lifestyle Ltd is a Mumbai based apparel manufacturer engaged in the production of fabrics and apparels in own brand name and for other retailers.For the past many years company’s bottom line is stagnant or declining even if there is decent growth in top line .Low margin high volume nature of private label   business is a reason for this. But now ,with the change in management control in favor of Seoul-based fashion and garment conglomerate E-Land group through E-Land Fashion China Holdings is expected to rewrite the future of Mudra Lifestyle in coming years. E-Land’s expertise and vast marketing network is expected to change the entire picture of Mudra. E-Land group owns more than 60 brands in south Korea and having operations in many other countries includes China,Hong Kong,USA,Europe..etc. E-Land acquired Mudra  @ a price of  Rs.60/- per share (excluding non compete fee) in last year. In FY 2010 ,Mudra posted a turnover of Rs.365 Cr and a net profit of Rs.13 Cr. Revival in demand from overseas ,favorable changes in exchange rate and control of better management  may augur well for Mudra Lifestyle in long term.After taking full control ,there may be some balance sheet clean up by the new management. So investors with sufficient  patience  can consider a BUY @ current level of Rs.59/- which is just below to the open offer price.

6 comments :

  1. hello ..sir today there is much volume in VIMAL OIL and FOods ..any reason ?

    ReplyDelete
  2. Dear Sir, Kindly let me know your views on "Spice Island Apperals ltd". This company is showing good fundamentals and is trading at 4.65 P/E ratio at 27 CMP. Book Value is 33. Started paying dividends from couple of years.

    ReplyDelete
  3. Dear Saty

    If you are interested in dividend yield,it is ok.But even if company showing some improvement in sales ,their net profit margin is under pressure.So I don't think it is a compelling buy

    ReplyDelete
  4. Thank you Sir,

    Insecticide India and Alchemist are other two scrips in which I am invested in at 221 (from 2 months) and 136 (from 1.5 Years) levels respectively and hopping for handsome returns in 2-3 years time frame, Although I am making at good position in Alchemist, I feel there is still some more room left to book profit looking at their bussiness model and increasing sectoral growth. Can you let all of us know about your views on these scrips?

    Thanks Again

    ReplyDelete
  5. Sir,i buy this stock mudra lifestyle on your behalf...but is now 26rupess...it make my money totally half..please recommened what i have to do now.?

    ReplyDelete
  6. Book loss, in some exceptional cases our expectation may not materialized which is part of stock market.

    ReplyDelete

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