Koutons Retail India Limited IPO Message Board (Page 13)

hey any body can suggest me this..............i have applied for ipo for power grid , i have filled the form completely but forgot to tick the category(retail), so what is the chances of rejection? will my application can be rejected??? what should i do????

R S Iyer (KR Choksey)- Apply
Koutons Retail is an excellent issue with attractive price band. It can see appreciation of 20% on listing. Positive point is that they are not going to appoint sub dealers. Retail industry is also doing well. The counter demand is very good. So people should apply for this issue and also good for long term.

Manish Bhatt(Prabhudas Lilladher) Apply
Koutons Retail looks to be attractive issue. It looks slightly high priced but no need to worry. People can apply with short and long term view. It is available at 29 PE on 2007 earnings.

SP Tulsian (Investment Advisor) Apply
Koutons Retail India is having the largest number of outlets, when compared with Raymond, Provogue, Levi and Wills Lifestyle, amongst a total of 23 major players operating in branded apparel segment. India Retail Report Images & F&R 2007 estimated 500 outlets of the company upto March 07, while actual were at 687 outlets. Against this, Raymond had 380 outlets, Provogue 100 outlets, Wills Lifestyle 55 outlets and Lee 71 stores.

The growth momentum of the company is likely to be continued for FY 08 and FY 09. Fresh infusion of funds of Rs 100 crore, would further improve its performance and CAGR of 60% in topline and bottomline for FY 08 and 40% for FY 09, seems achievable.

The issue, even if considered at the upper band of Rs.415 per share, discounts FY08 expected EPS of Rs.19, by about 22 times, which is much lower when compared with its peers. Investment is likely to be extremely profitable for listing gains, short term, medium term and long term. Investment at upper band is recommended.

Invst in Koutons likely to be extremely profitable: Experts

Apply in Koutons for Listing as well as Long term gains. Market Experts are bullish on this stock. Those who are telling avoid in this blog are not considering the actual facts.

yes you are right icici is charging 0.75%, but it is very user friendly. recently i opened a/c in my wife name in religare, they charge 0.25% for delivery.

Tenchu comments on ICICIDIRECT.com is valid but I found ICICI most user friendly to operate. Other brokers site is not that much user friendly. But ICICI should review the brokrage they charge for delivery. It is very high and needed to be reduced. Also ICICI site is slow during market hours specially during opening and closing hours.

Koutons Retail: Invest (BusinessLine Review)

An investment with a one-year perspective can be considered in the initial public offer (IPO) of Koutons Retail India (KRIL). KRIL is a player in the menswear segment with a network of stores mainly in northern and western India. The offer proceeds will help the company expand its retail network.

The price band of Rs 370-Rs 415 values the company at 33-36 times its 2006-07 earnings per share, on an expanded equity base.

KRIL’s premium pricing appears to factor in higher growth rates compared to domestic apparel majors such as Raymond, Zodiac Clothing and Kewal Kiran Clothing. The latter trade at price-earnings multiples of 15-20 based on trailing earnings.

However, KRIL’s performance over the last couple of years and its proposed expansion plans provide some justification for the higher growth expectation.

The expensive valuation for the offer, however, does not provide a margin of safety in the event of disappointing performance. This makes it suitable only for investors with a high risk appetite.

i have applied for 500 and 625 shares in powergrid,can anyone tell me what r my chance of getting allotment

can we go for koutons ipo

MICCHAMI DUKKADAM TO ALL OF YOU.

I think this ipo is going to give good returns on listing date and post listing.we can expect a return of 15 to 20% on listing date.so i advice to apply in a small lot.
ALL THE BEST.

Hi Arun your unitech bonus shares will be credited with in a week.even i had 50 shares and the same will be reflected with in week time.

is there any upper limit in employee quota category...plz help any employee?

I am thinking of opening a one online trading account in 5paisa.com i am occasional trader and mostly invest in IPO will any body will advise me wheteher this is good online trading service interms of service and charges i will be very thankful to him persons who are using this site please advise me in this regard i have already one online account in icicidirect

Any idea about ICRA&CRISIL Grading of this Kouton's IPO
Consolidated Construction Consortium Ltd IPO Graded IPO Grade 3

Koutons Retail India
CM RATING 44/100
Koutons Retail India (Koutons) designs, manufactures and retails apparels. Products are market under the Kouton and Charlie Outlaw brands through 999 exclusive brand outlets (EBOs), on 20 August 2007, across India.
With 18 in-house manufacturing / finishing units and 14 warehouses spread across various locations in and around Gurgaon, Koutons had an annual finishing and manufacturing capacity of 22.92 million and 12.36 million pieces of apparel, respectively, end March 2007. The companys brands are marketed through three outlet models (a) company owned / leased and company operated (COCO); (b) company owned / leased and franchisee operated (COFO); and (c) franchisee owned / leased and franchisee operated (FOFO). The company had 17 outlets, 124 outlets and 858 outlets under COCO, COFO and FOFO models, respectively, on 20 August 2007. The Koutons brand had annual sales of Rs 372.69 crore in the year ending March 2007 (FY 2007).

Recognising the vast untapped potential in organised apparel retailing, Koutons plans to utilise Rs 41.22 crore from the IPO to opening 140 new EBOs by FY2009. The company has already opened 3 EBOs and signed MOUs for another 78 EBOs. The new stores would either be under COCO or COFO model. It is currently scouting for locations for the remaining 59 planned EBOs. About 13,000 sq meters of land has been acquired in Gurgaon where an integrated manufacturing facility at a cost of Rs 30.19 crore is to be set up. Koutons also proposes to infuse Rs 10 crore to increase its finishing and manufacturing capacity and Rs 5.58 crore to improve its IT infrastructure.

Promoters DPS Kohli, BS Sawhney and GS Sawhney are also selling their 9,16,542 equity shares (3% of post-IPO equity) through the open offer along with the present IPO.

Strengths

A semi-integrated player with capabilities across a large part of the value chain: manufacturing and retailing. Inhouse manufacturing and finishing have helped to improve operating profit margin on a sustainable basis: from 1.4% in FY 2003 to 17.5% in FY 2007.

Enjoys a strong brand-presence in north and north-west India. Of the 999 EBOs, 531 EBOs were present in northern on 20 August 2007. As a result, this region accounts for around 65-70% of the total revenue. To reduce the risk arising from geographic concentration, operations are being expanded in other parts of India. West and east India had 29 and 38 stores, respectively, and none in southern and central India end March 2006. However, EBOs in these regions were 178 (west), 193 (east) and 97 (south and central India) on 20 August 2007.

Weaknesses

Seems to keep inflated price for its products for most part of the year and then resort to large end-of-the-season discounts to generate annual sales. Recorded 48% and 43% of total sales in FY 2006 and FY 2007 in the last quarter of the fiscal year on end-of-the-season sales and on recording sales only after the receipt of sales report from respective consignee agent.

Bears the risk of inventories and keeps inventories on its books till sales to retail customer. This not only increases risks of large-scale returns in future/ major write-down of unsold inventories, but also locks up huge working capital. Though sales stood at Rs 402.40 core, inventories increased Rs 276.11 crore (to Rs 373.84 crore) end FY 2007. As a result, cash flow from operating activities was a negative Rs 201.25 crore!

Franchisees contributed 99% of the total sales in FY-2007. However, off late, has started building own COCO network of EBOs. Had 17 such outlets on 20 August 2007. Going forward, intends to increase the number of such EBOs. This may give rise to conflict of interest with franchisees, hampering growth.

Valuation

Recorded 154% increase in net sales to Rs 402.40 crore and 161% increase in net profit to Rs 34.49 crore in FY 2007. On post- issue equity of Rs 30.55 crore, EPS works out at Rs 11.30.

At the offer price band of Rs 370 Rs 415 and on FY 2007 earning, P/E is 32.8 (on the lower band) and 36.8 (on the upper band). P/E of other comparable listed players are: Raymond (12), Kewal Kiran Clothing (16), Zodiac Clothing (14), and Provogue (63, the high P/E is due to its subsidiary developing malls).

Koutons: Issue- Highlights


No. of shares for fresh issue 2,607,897
Offer for sale 916,542
Total issue 3,524,439
No. of shares reserved for employees 50,000
Net issue 3,474,439
Price band (Rs) 370-415
Post-issue equity (Rs crore) 30.55
Post-issue promoter and promoter group stake (%) 66.63
Issue open / close 18-09-2007/ 21-09-2007
Listing BSE / NSE
Rating: 44/100


Koutons Retail India: Financials


0703 (12) 0603 (12) 0503 (12) 0403(12) 0303 (12)
Net Sales 402.40 158.34 57.95 31.07 21.05
OPM (%) 17.5 16.2 8.3 7.2 1.4
OP 70.27 25.58 4.83 2.23 0.29
Other Income 1.22 0.04 0.20 0.69 1.27
PBDIT 71.49 25.62 5.03 2.92 1.56
Interest 14.91 3.44 1.55 1.38 0.74
PBDT 56.58 22.18 3.47 1.53 0.82
Depreciation 3.97 1.04 0.42 0.37 0.27
PBT 52.61 21.14 3.05 1.16 0.56
Tax 18.13 7.89 1.12 0.28 0.12
PAT 34.49 13.26 1.93 0.88 0.43
PPA 0.00 0.06 0.00 0.00 0.00
Net Profit 34.49 13.20 1.93 0.88 0.43
EPS (Rs.) 11.3 4.3 0.6 0.3 0.1
Annualised on post-issue equity of Rs 30.55 crore
Face Value: Rs 10 per share
Figures in Rs crore


Koutons Retail India: Objects of the Issue


Particulars Amount (in Rs crore)
Setting up of the exclusive brand outlets of the company 41.22
Establishment of a new integrated manufacturing facility 30.19
Purchase of plant and machinery to increase the finishing and manufacturing capacity of the company 10.00
Improvement of company's IT network 5.58
General corporate purposes ***
Issue expenses ***
*** To be finalized on determination of issue price


Koutons: Peer-Comparison


Raymond Provogue Kewal Kiran Clothing Celebrity Fashions Koutons
Latest equity share capital (Rs in crore) 61.38 19.10 12.33 17.82 30.55
FV (Rs) 10 10 10 10 10
PAT (Rs in crore)* 139.99 19.26 18.65 -5.50 34.49
Price (As on 6 Sep 2007) 274.35 636.70 244.45 64.35 370-415
EPS (Rs) 22.81 10.08 15.70 -3.09 11.30
P/E 12.03 63.15 15.57 -20.85 32.78-36.76
Market capital (Rs in crore) 1683.96 1216.10 301.41 114.67 130.40-146.26
*Consolidated PAT for Raymond and Provogue has been taken into consideration

capital market rated 44 marks

lot size is 15nos

What is the lot size of this koutons IPO? Please tell me.

it's Rocking
everyone invest in Koutons retail
It gives atleast 25-30% retun