(iii) The Company makes different kinds of products like Tops, T-shirts, Pants, Shorts, Frock, Dresses, and Towels among others catering to Kids Wear category. The Company continuously strives to add new product lines and innovate with Designs to be able to appeal to the changing consumer demands.
(iv) As on date Company has an active distribution network of 60+ distributors across cities/states with reach to more than 4,000+ retailers. The Company has always believed in offering high-quality products at an affordable value and the same has helped the brand to develop a strong pull from the end customers and trade partners. The company was among the pioneers to start with printed Maximum Retail Price (MRP) in 2005 when this practice was relatively unknown in the unorganized Kids Wear Market.
Objects of the Iris Clothings Limited IPO:
Objective of Iris Clothings IPO are:
1. To meet the incremental working capital requirements
2. To meet the Issue Expenses
3. For general corporate purposes
Promoters of Iris Clothings IPO Company are:
(i) Mr. Santosh Ladha, aged about 40 years, is the Managing Director of the Company. Mr. Santosh Ladha holds a Bachelors degree in Commerce and has an experience of 22 years in this textile industry. He is the founder promoter of the Company and has conceptualized and externalized the brand “Doreme”. Mr. Santosh Ladha has an in-depth understanding of the domestic readymade apparels markets. Being a dynamic and toe marking personality, he looks after all the operations of the company directly with the help of a strong team.
(ii) Mrs. Geeta Ladha, aged about 39 years, is the Whole Time Director of the Company. She holds a Bachelors Degree in commerce and has an experience of 14 years, with an unmatched exuberance in providing creative and innovative ideas to update the products and has been with the company since its inception.
Financials of Iris Clothings Limited IPO:
For the year/period ended (in Rs Lacs)
Profit After Tax
Comparison With Peers:
S P Apparel
Ashapura Intimates Fashion
Note:1. The Valuation must be looking tempting for Ashapura Intimates Fashion. However, I would like to clarify that the Share Price is continuously falling from the highs of 435 on 25.09.2018 and now standing at 179 in just 15 Days. Something wrong with the company so don't invest there.
2. The Valuation w.r.t Peers appears to be fully priced in.
3. TheFY18 Financials are taken for calculations.
Source: Moneycontrol and DRHP
Recommendation on Iris Clothings Limited IPO:
Review and Recommendation of Iris Clothings IPO from our side is:
[ The Issue looks fully priced in w.r.t Adj P/E. The companies of the Textile sector are not performing well in the bourses. The competition is really tough in the sector both from organized and unorganized players. The Condition of the balance sheet is poor. Moreover, the condition of the overall market is also poor and better investment opportunities are available in the market. ]