One of the small-cap stocks engaged in offering quality and affordable clothing and home goods. The stock has jumped by 13.34 percent after opening a new Style Baazer store in Betiahata, Uttar Pradesh.
Stock Price Movement:
In Friday’s trading session, Baazar Style Retail Limited’s share jumped to an intraday high of 13.34 percent from the previous close of Rs. 321.15. The stock opened at Rs. 325 and is currently trading at Rs. 348.85 with a high of Rs. 364 and a low of Rs. 324.20. The market capitalization now stands at approximately Rs. 2,603.03 crore.
What Happened:
As per the BSE reports, Baazar Style Retail Limited has opened a new Style Baazar store in Betiahata, Uttar Pradesh, which has contributed to the company’s growth, bringing the total number of stores to 201 across nine Indian states. This expansion reflects Baazar Style Retail’s strategy to enhance its footprint in the organized value retail market.
Growth and Expansion:
Baazar Style Retail Limited added 22 stores in H1 FY25 and is now expecting to exceed its initial target of 35 stores for the year, aiming for 45 to 50 new stores.
As of Q2 FY25, the company operates 184 stores, each averaging 9,055 square feet. Baazar Style Retail is seeing strong demand, driven by a shift in consumer preference toward brand-conscious, affordable retail options.
Margin Guidance:
Baazar Style Retail Limited expects its EBITDA margins to improve in H2 FY25, targeting a sustainable margin of 14% to 15%. Management anticipates increased profitability in the second half of the year, driven by the ramp-up in sales from newly opened stores.
Future Outlook:
Baazar Style Retail Limited has maintained its revenue guidance of 25% for FY25, with a same-store sales growth (SSG) target of 9% to 10%. The company plans to sustain its annual revenue growth of 25%, focusing on expanding store openings in both Tier 1 and Tier 2 markets.
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Recent quarter results and ratios:
Baazar Style Retail Limited’s revenue has increased from Rs. 188.45 crore in Q2 FY24 to Rs. 310.91 crore in Q2 FY25, which has grown by 64.98 percent. The net loss of Baazar Style Retail Limited has decreased from Rs -15.48 crore in Q2 FY24 to Rs -8.89 crore in Q2 FY25.
Baazar Style Retail Limited’s revenue has grown at a compound annual growth rate of 11.52 percent over the last four years.
In terms of return ratios, the company’s ROCE and ROE should be 10.3 percent and 11.2 percent, respectively. The debt-to-equity ratio of the company is to be 1.87x. Baazar Style Retail Limited’s EPS is to be Rs. 3.15.
Shareholding pattern
In September 2024, Baazar Style Retail Limited had a majority stake held by the promoters at 45.56 percent, foreign institutional investors at 6.53 percent, domestic institutional investors at 9.96 percent, and the public at 37.96 percent.
In the public holding, Rekha Rakesh Jhunjhunwala has held a 3.65 percent stake in Baazar Style Retail Limited.
Company Overview:
Baazar Style Retail Limited is a prominent value fashion retailer in India, operating under the brand name Style Baazar. The company was incorporated on June 3, 2013, and is headquartered in Kolkata, West Bengal.
The company focuses on providing affordable and stylish apparel and general merchandise, primarily catering to the aspiring middle class.
Written By – Nikhil Naik
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