Sai Silks (Kalamandir) - Varamahalakshmi’s Tamil Nadu Debut, A Mixed Bag: HDFC Securities

HDFC Securities Institutional Equities

Sai Silks (Kalamandir) Ltd. predominantly is an FY25 and onwards story as the lion’s share of store expansion (via IPO money) kicks in FY25. Tamil Nadu market execution is a key monitorable.

Initial performance is a mixed bag (amid a weak market). The anemic cash position of peers could ensure a benign environment for Sai Silks to gain a share in Tamil Nadu.

To add to this, the ask from valuations remains cheap (~13 times FY26 price/earning). That said, we’ve cut our earnings per share estimates for FY25/26E by 10% each to account for-

1. a slower build-up in sales density and

2. lower other income courtesy a more aggressive stance towards vendor payment.

We revise our DCF-based target price to Rs 310/share (implying 21 times FY26 price/earning and 14 times FY26 enterprise value/Ebitda). Maintain Buy.

Click on the attachment to read the full report:

DISCLAIMER

This 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.