(BSE Code: 523283) (CMP: Rs.140.95) (FV: Rs.10)
Incorporated in 1980, Kanpur-based Superhouse Ltd manufactures and sells finished leather, leather goods and textile garments. It offers finished leather, safety and welted footwear and combat boots. It also offers leather accessories such as leather bags, business cases, portfolios, trolley bags, belts and soles; leather garments including jackets and vests, trousers, skirts and camisoles; and breeches, riding boots and riding products. In addition, it offers woven and knitted garments; and safety garments comprising coveralls, bib-trousers, trousers, jackets, aprons, dust coats, chef coats, doctor coats, hi-visibility vests and jackets, army uniforms and fleece jackets as well as socks and fall protection products. It sells its products primarily under the ‘Allen Cooper’ and ‘Double Duty’ brands. It also exports its products. With an equity capital of Rs.11.42 crore and reserves of Rs.289.33 crore, Superhouse’s consolidated share book value works out to Rs.263 and P/BV is around 0.5x. The promoter holds 54.88% of the equity capital, which leaves 45.12% stake with the investing public.
During Q2FY19, Superhouse reported 740% higher PAT of Rs.6.8 crore on 14% higher sales of Rs.154.11 crore and an
EPS of Rs.6. During H1FY19, it reported 271% higher PAT of Rs.12.45 crore on higher sales of Rs.302.36 crore and an EPS of Rs.11.3. Currently, the stock trades at a P/E of just 7x and is available at 33% discount to its 52-week high of Rs.209.9 recorded in January 2018. Investors can buy the stock with a stop loss of Rs.120. On the upper side, it could zoom to Rs.185-200 in the medium-to-long term.