The Indian apparel market is set to grow from $120.36 billion in 2025 to $171.60 billion by 2034, with a CAGR of 4 percent during this period as per sources. The key drivers include rising disposable incomes, urbanization, fast fashion trends, and increasing demand for sustainable clothing among consumers.
With a market capitalization of Rs. 1,808.80 crores, on Friday, the shares of Baazar Style Retail Ltd touched a day’s high of Rs. 243.55 which is 3.20 percent higher than the previous closing price of Rs. 235.87 apiece. The stock reiterated to Rs. 242.41 from the day’s high.
This stock has delivered around 39 percent negative returns from the listing period. This scrip was listed on 06th September 2024 with flat returns on the bourses.
Brokerage Recommendation:-
JM Financial, one of the globally reputed brokerages firm, gave a ‘Buy’ rating on the stock with a target price of Rs 400 apiece, indicating a potential upside of 69.58 percent from Thursday’s closing price of Rs. 235.87 per share.
Brokerage rational:-
The brokerage’s report, highlights Style Baazar’s strong growth potential, with the value of the apparel market which is expected to grow from Rs 3,70,000 crore in FY24 to Rs. 5,30,000 crore by FY27. The company’s revenue grew at a 59 percent CAGR from FY14-24 to ~Rs. 970 crore in FY24 and it is expected to continue strong growth, with 145 new stores planned over FY25-27.
While assigning a Buy Target, JM Financial said that the stock is offering strong growth prospects & at attractive valuations. It is currently at ~10x FY27 EV/EBITDA and ~17x FY27 EPS (Pre Ind AS 116), The broker expects a 30 percent revenue, 36 percent EBITDA margins, and 50 percent PAT CAGR over FY24-27.
Ace Investor Stake
Late Rakesh Jhunujunwala’s spouse Rekha Jhunjunwala owns ~3.65 percent stake in the Baazar Style Retail as of the December 2024 quarter.
Financial performance:-
Baazar Style’s revenue surged 23.72 percent, increasing from Rs. 333 crore in Q3FY24 to Rs. 412 crore in Q3FY25. However, net profit declined by 21.05 percent from Rs. 38 crore to Rs. 30 crore in the same period.
Revenue, Business & Geographic segmentation:-
The company recognizes its operational revenue from Retail sales as its sole segment in the recent December 2024 quarter.
As of Q3FY25, the company earned 87.2 percent from Apparel and the remaining 12.8 percent from General Merchandise. Specifically, In the Apparel segment, 42.2 percent of revenue is from the Men segment, 29.3 percent from the Women segment, and the remaining 28.4 percent from Kids for the same quarter.
The Private Label contributes 38.2 percent of revenue and others accounted for 61.8 percent. Geographically, 87.1 percent of revenue is earned from Core Markets (West Bengal, Odisha, Bihar, Assam) and 12.9 percent from Focus Markets (Uttar Pradesh, Andhra Pradesh, Arunachal Pradesh, Jharkhand & Others) for Q3FY25.
Company Overview & Store Guidance:-
Baazar Style is a leading value retail chain in Eastern India with ~199 stores (Dec 2024) across 10 states, while offering affordable apparel and merchandise. It is known for its “value-for-money” model. The company plans to open upto 50 new stores annually until 2027 and expand to Tier-2 & Tier 3 cities while focusing on affordable apparel and general merchandise.
Written by Santhosh S
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