Shares of RattanIndia Enterprises gained 7.51% on Wednesday’s early trades to reach an intraday high of ₹ 41.50 apiece after the company launched its private label. At 01:52 PM, its shares were trading at ₹ 40.00 apiece, up 3.63%.
RattanIndia Enterprises is a part of the RattanIndia Group. It is a platform for its new-age growth businesses like electric mobility (Revolt Motors), e-commerce (Cocoblu Retail), fashion brands (Neobrands), fintech (Wefin) and drones (Neosky).
According to an exchange filing, the company has announced the launch of its direct-to-consumer apparel fashion brands business in its 100% wholly owned subsidiary Neobrands Limited.
Neobrands will be a house of brands across categories including everyday fashion, denims, athleisure and performance wear categories. It aims at capturing the fast-growing fashion and apparel market in India.
The market size of the fashion market is currently estimated to be ₹ 80,000 crores and it is growing at a healthy rate of 30 percent per annum. It is expected to grow to ₹ 2,50,000 crores per annum over the next five years, led by smartphone-enabled digital native young population.
RattanIndia Enterprises is a small-cap stock with a market capitalization of ₹ 5,336 crores. It has a high return on equity of 141.41% and an ideal debt-to-equity ratio of 1.00. It reported a revenue of ₹ 1152.80 crores in the December quarter of 2022 against ₹ 0.67 crores in the December quarter of 2021. However, it reported a net loss of ₹ 30.92 crores in the December quarter of 2022 against ₹ 1.42 crores in the December quarter of 2021.
Written by Simran Bafna
