Lovable Lingerie – Review / Recommendation

Lovable Lingerie Ltd (LLL) is one of India’s leading women’s innerwear manufacturers with flagship brands “Lovable” and “Daisy Dee”. “Lovable” is a premium women’s innerwear brand while “Daisy Dee” is a mid segment market brand. Lovable is amongst the top three most preferred brand in women’s innerwear in India.

LLL’s products are retailed through 103 distributors which are segmented geographically and also on the basis of the product range in India. With a retail reach of ~1,425 outlets catering to “Lovable” brand, the company has a distributor network of ~7,500 retail outlets catering to “Daisy Dee”. Lovable can easily tackle the challenges from Enamor, Triumph, Etam, Benetton, La Perla and About U. Post IPO, the company proposes to open 60 Exclusive Brand Outlets (EBOs) based on franchisee model at an estimated cost of INR141m.

Financial – At the price band of Rs 195-205, the issue is available at 19.5x-20.5x its FY11 annualized post diluted EPS of Rs10. This is at a steep discount to its nearest listed comparable, Page Industries, which is trading at a P/E of 34.5x its consensus FY11 earnings of Rs 45 per share.

Recommendation – Lovable Lingerie is a great Retail & Brand story to add to your portfolio. we recommend SUBSCRIBE to the issue. We are not sure of listing gains due to the volatility in Indian market and if they were to crash, expect very little gains.

All brokerage Recommendations of Lovable Lingerie IPO are avaibale here.