Kizi Apparels Limited IPO Message Board (Page 2)

​@rohiitian Bhai, are you applying here. Need to pick your brains in this one. Plz guide

Kizi 7 rs buyer in market now

Now 9.5 rs buyer

Still very risky for any substantial "realized" gains.

Small issue, easy to dwindle it on any side. LM, MM already have history to bring in issues in similar sector where Textile sector itself is not so attractive

LM are taking a 3% cut to float the IPO.

Co. for large parts operates in B2B, with 10 customers. Own brands are set up but not adding any value, visible why margins are low and meagre online sales with 95% + sales are from offline channels.

Small size operations, no info on capacity utilisation with 18 employees on board.

Having engaged with FAB India, Absolute Brands in Bangalore, and with an Non Disclosure Agreement with Reliance Retail, the tie ups are good but these names itself as a whole biz are underperforming which will keep players like Kizi at just about break even.

Financials till FY23 pertain to proprietorship firm which is acquired by the company in June 23 at a total value of 6.8 cr with 1 cr attributable to Goodwill of the proprietorship Aaika Creations but recent Networth of Aaika was close to
4 cr at FY23 end, i.e. inflated valuation of this acquisition leads to higher pricing of the this issue

Quite a handful of Personal litigations of Aaika Creations are present.

P/E is at 22, comparison with peers is an eye-wash and immaterial. There are better peers to compare this same business.

Issue objectives do highlight loan repayment where in current interest costs are close to 30% of Gross profits.

Highly competitve sector and tough to gain market share until the products are suited to customer satisfaction.

KIZI Apparel’s initial public offering (IPO) marks a significant milestone for the company, reflecting its strong market potential and growth trajectory. As a well-established player in the fashion industry, KIZI has demonstrated impressive resilience and innovation, which is evident from its robust financial performance and expanding market share.

The IPO has been well-received by investors, showcasing KIZI's potential for substantial returns. The company's strategic focus on sustainable fashion and its ability to stay ahead of trends are notable strengths that should drive future growth. Furthermore, KIZI’s clear roadmap for expansion and its commitment to quality provide confidence in its long-term viability.

Overall, KIZI Apparel's IPO represents an exciting opportunity for investors looking to enter a dynamic and forward-thinking sector. The company’s strong brand presence, solid financial health, and strategic vision make it a compelling addition to any investment portfolio.

Company is growing year on year, as per the Offer document it looks like Company has also expended its business line over the years by adding product range which includes kurti sets, kurti, churidaar,Co-ord Sets,Semi formal Balzers, Shirts,Blouses, Tops/ Tunics, Dresses, Palazzo, skirt and dupatta.

Recently company has also entered online space by its own brand name which is good and it would be intresting to know how company can grow its online business in coming years.

Reading about the promoter background from the DRHP it looks promising,

Company is in competitive market but at the same time company has shown growth over the years which is good.

Valuation is good and issue size is small so looks a safe for listing day if we get allotment. Good stock for long term for one to two years if the listing goes good for this company.

Experts please give your views on this one, detail fundamental analysis will help investors to decide on this one.

What about nandini creations or signoria??? Peers & coincidence belongs to jaipur. Both are having very good financial than kizi apparels.