Credo Brands Marketing (Mufti Menswear) Debuts on Dalal Street with Subdued Market Listing
Credo Brands Marketing entered the stock market on December 27 with a modest listing at Rs 282.35, marking a marginal 0.83% premium over the IPO price of Rs 280. Despite its promising subscription rate of 51.85 times during the IPO, the lackluster market debut fell short of initial expectations.
Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, highlighted the company’s robust fundamentals, emphasizing its strong brand presence, expansive distribution network, and consistent financial performance. However, the flat market debut underlines the competitive landscape, seasonality challenges, and current market sentiments.
While suggesting a cautious approach amid uncertainties, Nyati encouraged long-term investors with high-risk tolerance to consider maintaining positions, incorporating stop loss strategies. The company, renowned for its men’s casual wear under the Mufti brand, boasts a diversified product line distributed through various retail channels nationwide, witnessing a substantial revenue surge of 46% to Rs 498 crore in FY23 with a notable 116.87% increase in net profit to Rs 77.51 crore.
Credo Brands Marketing continues to uphold its market presence despite the tepid market debut, leveraging its strengths amidst evolving market dynamics.
