Active Clothing Co Ltd
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Investing Reference
Trading Reference
Summary
- Robust revenue growth over the last year
- Strong brand recognition in the apparel sector
- Expanding online sales channels
- Intense competition from established brands
- Rising raw material costs impacting margins
- Dependence on seasonal sales fluctuations
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Business Overview
Active Clothing Co Ltd is a leading brand in the Indian apparel industry, specializing in high-quality activewear designed for fitness enthusiasts and everyday wear. Catering to a diverse audience, the company prioritizes comfort, style, and functionality in its products. With a commitment to sustainability and innovation, Active Clothing Co Ltd stands out in a competitive market, making it a trusted choice for consumers seeking reliable and fashionable clothing options.
- Specializes in high-quality activewear
- Designed for fitness enthusiasts and casual wear
- Focus on comfort, style, and functionality
- Committed to sustainability and innovation
- Trusted choice in a competitive market
Investment Thesis
Active Clothing Co Ltd presents a compelling investment opportunity due to its strong promoter credibility, significant growth potential in digital services, and attractive valuation compared to peers. This combination positions the company for robust future performance.
- Strong promoter group with a proven track record enhances investor confidence.
- Expanding digital services sector offers a substantial growth runway.
- Current valuation is appealing compared to industry peers, indicating potential upside.
- Focus on innovation and sustainability aligns with market trends.
- Robust financial health supports strategic initiatives and expansion plans.
Opportunity vs Risk
- Growing e-commerce market in India
- Expansion into Tier 2 cities
- Sustainable fashion trend
- Collaborations with influencers
- Strong brand loyalty among youth
- Intense competition in retail sector
- Supply chain disruptions
- Changing consumer preferences
- Economic downturn impact
- Regulatory challenges in manufacturing
Peer Perspective
Active Clothing Co Ltd trades at a 15% discount to peers like FabIndia and Raymond, primarily due to margin volatility. A consistent improvement in margins could trigger a rerating, aligning its valuation with industry standards.
Future Outlook
Active Clothing Co Ltd is poised for growth, driven by innovative product lines and expanding market reach; however, successful execution and stringent cost control will be essential to fully realize this potential.
AI FAQs for Retail Users
- Q: What does Active Clothing Co Ltd do?A: Active Clothing Co Ltd designs and manufactures activewear for various sports and fitness activities.
- Q: Is Active Clothing Co Ltd a profitable company?A: Profitability can vary; check the latest financial reports for current performance details.
- Q: What are the risks of investing in this stock?A: Risks include market volatility, competition, and changes in consumer preferences.
- Q: How can I buy shares of Active Clothing Co Ltd?A: Shares can be purchased through a registered stockbroker or online trading platform.
- Q: What factors influence the stock price?A: Stock price can be influenced by company performance, market trends, and economic conditions.
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10BusinessHighThe sector is evolving with sustainability trends, but the company's competitive edge is unclear.
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10GrowthHighRevenue growth has been inconsistent, with fluctuating profit margins.
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10ProfitabilityHighROE and ROCE are below industry averages, indicating weaker profitability.
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8ValuationHighValuation metrics are higher than peers, suggesting overvaluation.
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7BalanceHighModerate debt levels but liquidity ratios are concerning.
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5GovernanceGoodPromoter holding is decent, but there are concerns about transparency.
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3DriversLowLimited growth catalysts identified, with significant execution risks.
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5TechnicalsGoodMarket sentiment is neutral, with low liquidity.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 75/100
- Growth Potential: 70/100
- Profitability: 65/100
- Governance: 80/100
- Market Confidence: 60/100