The stock of a leading Indian firm in the hosiery and apparel market surged by 6%, hitting an intraday high of ₹594.30 per share, after the management projected a revenue growth of ₹2,000 crore by FY26.
At 12:55 p.m., Dollar Industries Ltd shares were trading at ₹564 per share on the National Stock Exchange, up 1.01 percent from the previous close price. The company has a market valuation of ₹3,200 crore.
Dollar Industries Limited is engaged in the manufacture and sale of hosiery products in knitted innerwear, casual wear, and thermal wear.
The company boasts a diverse portfolio of products under various brands, catering to the needs of men, women, and children. Their offerings include vests, leg wear, T-shirts, briefs, casual wear, Bermudas, trunks, panties, socks, tank tops, crewnecks, polos, Henleys, capris, track pants, joggers, and more.
Geographically, the company’s Q4FY24 revenue is distributed with 23% from the east, 23% from the west, 46% from the north, and 8% from the south of India.
Channel-wise, the company generates 88% of its revenue from domestic sales, 1% from modern trade, 6% from e-commerce, and 5% from exports. Product-wise, the revenue is split into 81% from outerwear and 19% from innerwear.
In Q4FY24, the company’s revenue distribution across categories was as follows: Dollar Man accounted for 39%, Dollar Woman for 8%, Dollar Junior for 0.2%, Dollar Always for 46%, Dollar Thermals for 0.3%, Dollar Protect for 2%, and Force NXT for 5%.
The company plans to increase the contribution of high-margin products from 27% in FY23 to 33% by FY26. It aims to reach a revenue of ₹2,000 crore by FY26 and has announced a capital expenditure in 2021 to increase the capacity of the spinning unit in Tirupur from 22,000 spindles to 42,000 spindles. This expansion, involving an investment of ₹65 crores, is expected to be commissioned in FY24-25.
The company management aims to open 50 exclusive brand outlets across South India by 2027 and targets a 50% sales growth in South India in 2024-25. Currently, the company holds a 15% market share in the branded hosiery segment in India and aims for an annual growth rate of 11% to 12%. The company reported in its exchange filing.
Dollar Industries aims to achieve approximately 50% growth in sales from the Southern market compared to the current year. The company’s domestic sales from these markets have recently increased to around 8%. The management is very optimistic and aims to generate around 20% of domestic revenue from the Southern market by FY25.
Additionally, the company has signed an agreement with superstar Mr. Mahesh Babu to be their brand ambassador for South India.
The company exports its products to 15 countries and expects to expand to 30 countries by FY26. It has four manufacturing units located in Kolkata, Tirupur, Delhi, and Ludhiana.
For FY24, gross profit margin is expanded by 256 basis points to 32.2%. Operating EBITDA increased to 61.5%, with the EBITDA margin expanding by 304 basis points year-on-year, surpassing the 10% mark.
In Q4 FY24, the company achieved a PAT of ₹32 crore, up by 700% compared to the same quarter the previous year, resulting in a PAT margin of 6.6%.
For the full year FY24, the company achieved a PAT of ₹89 crores, reflecting a growth of 54% year-on-year and a PAT margin of 5.7%. Additionally, in FY24, the company achieved a ROCE of 14.3% and an ROE of 12.1%.
Written By Omkar Chitnis
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
