Credo Brands Marketing Limited

Credo Brands Marketing Limited -IPO DETAILS 

Company Overview 

Credo Brands Marketing serves as the parent company for the Mufti brand, a trailblazer in redefining casual menswear. Commencing its journey in 1992, the brand's founder, Kamal Khushlani, embarked on this venture with a modest Rs. 10,000 loan. From its humble beginnings with a single store in Mumbai, Mufti has expanded its footprint to encompass over 591 cities. The company has established a comprehensive distribution network across India, featuring Exclusive Brand Outlets (EBOs), Large Format Stores (LFS), and Multi-Brand Outlets (MBOs), in addition to a robust online presence. 

Mufti's product offerings span a diverse range of men's western wear, including sweatshirts, jeans, cargo pants, chinos, jackets, blazers, and sweaters. The brand caters to various style preferences, designing outfits for relaxed holiday casuals, authentic daily casuals, urban casuals, party wear, and athleisure. A substantial portion of the company's revenue is derived from its Exclusive Brand Outlets, contributing between 52% and 61% of the total revenue. Multi-brand outlets contribute approximately 27%-30%, although there was a decline to 17.89% of revenue in Q1FY23. Mufti's presence in Large Format Stores represents the smallest share of revenue at just 3.16% in FY23. 

 Objective of the IPO 

Here are a few quick reasons why company is going public:  

1. The listing aims to facilitate a profitable exit for the current promoters of the company. 

2. Another objective is to harness the advantages associated with being listed on the Exchange. 

Company Financials 

Key Performance Indicator 

Pros 

1. The company adopts an outsourcing approach for its entire production, operating on a large scale to mitigate high labor costs. Embracing an asset-light model, the brand's outlets are committed to 5-9-year leases. 

2. Credo maintains a team of skilled designers with extensive experience in both global and domestic retail markets. This exclusive team, comprising 17 members, has curated an impressive portfolio of 682 designs as of H1FY24. 

3. With a nationwide presence, the company boasts 404 Exclusive Brand Outlets (EBOs), strategically distributed with 66% located on high streets, 32% in malls, and 1.5% in airports. These outlets constitute the primary source of revenue for the company. 

4. Notably, Credo achieves industry-leading EBITDA and PAT Margins, standing at 30% and 15% respectively 

Cons 

1. Operating in a fiercely competitive market alongside numerous international brands, the Company faces the significant challenge of staying abreast of market trends and safeguarding its market share. 

2. The specific focus on Men's Casual Wear makes the brand particularly susceptible to abrupt changes in men's consumer preferences, underscoring the necessity for diversification. 

3. The entire revenue of the Company is derived from selling products under the singular brand, Mufti. This concentrated business model exposes the brand to potential risks associated with a single segment. 

How to Apply for this IPO 

1. Go to https://ipo.adityatrading.in/ 

2. Enter your Client ID 

3. Enter the OTP received in your registered mobile number. 

4. Choose the IPO and click on apply button. 

5. Enter the UPI ID, Quantity, and Cut off the price. 

6. Click on submit button 

7. Confirm the mandate request received on your phone by entering the UPI Pin. 

You can also watch our youtube video on “How to Apply on IPO” by clicking on the link “https://www.youtube.com/watch?v=1qOI8dCpl1I&ab_channel=ATS”