'Buy' Sai Silk (Kalamandir) Stock Maintains HDFC Securities — Here's Why

Recovery in core markets remains weak. VML’s Tamil Nadu execution is key. However, the anemic cash position of TN-focused peers could offer a benign competitive environment for Sail Silk (Kalamandir) to gain share in TN..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .HDFC Securities Report.We recently interacted with Sail Silk (Kalamandir) Ltd.’s management. Key takes were: Competitive intensity in core markets (Andhra Pradesh/Telangana) has inched up. However, management highlighted that these are momentary bursts of aggression in terms of discounts and are likely to taper off. The team is also taking initiatives to spur up sales density in these catchments; VML store expansion (in Tamil Nadu) short of a couple of delays remains on track; however, sales density hasn’t yet caught up to format average. This typically takes two-three wedding seasons to mature in terms of throughput. Sail Silk format’s performance remains a sore point (especially the Men’s and Kid’s wear categories). Most of the pain seems captured in valuations (~9x FY27 P/E; <5x FY27 EV/Ebitda). However, the street isn’t capturing the revenue ramp-up expected from sales density improvement of the recently-added stores (11 stores added since Sep-23). We largely maintain our Buy rating with a DCF-based target price of 270/share (implying 17 times FY27 P/E). .Click on the attachment to read the full report:.'Buy' HDFC Life Stock Maintains Motilal Oswal, Sets Target Price Of Rs 800 — Here's Why .DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

'Buy' Sai Silk (Kalamandir) Stock Maintains HDFC Securities — Here's Why

HDFC Securities maintain Buy rating with a DCF-based target price of Rs 270/share, implying 17x FY27 P/E.

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