From the website:
we are approved vendors for global brands such as Wal-Mart, Filanto, Auchan, Andre, Shoe Fayre, Hudson Bay, Heckel Securite, Secura and many more. In the last decade the group spread its wings in the field of Education, Real Estate and Retail.
All these are big names in countries like France, USA, Italy, UK etc.
Diworsification may be a case for not being valued on par with peers. Annual reports not available 2012 onwards. The quarterly reports not available either. There is no investor presentation also.
Comparing Superhouse to Liberty or Mirza will not be right because both Red Tape and Liberty are well known brands. If I remember correctly Salman Khan was endorsing Red Tape few years back.
When it comes to brand of Allen Cooper, forget top of mind recall even aided recall will be difficult to achieve when it comes to consumers. Considering that it is a B2B brand which is now trying to become B2C as well domestically, I think it has not yet been able to achieve that successfully.
Considering that the company is in to so many different areas like real estate and education etc, the breakup for shoes is not available. Maybe the financials do not allow money to be spent on brand building currently or if done is likely to take a toll on financials. Maybe the company plans to reach a certain level of profitability/turnover when it feels that brand building is warranted.
More than 80% turnover is from exports so balance 20% comes from the domestic market for allen cooper as well as the other business of real estate, education etc.
It is available for sale on websites like Flipkart, Snapdeal, Paytm etc but unless you compete on price or brand, the numbers are not going to be very impressive.
Again copying from the website:
The list includes brands like ‘DKNY’, ‘Liz’, ‘Claiborne’, ‘Ralph
Lauren’, ‘Gap Inc.’, ‘The Limited Brands’, and ‘The G-III Apparel
Group’. In Europe, our customers include Esprit, Paul Smith, Karen
Millen, River Island Stores, etc.
This is for the Fashion wear garments segment. They have a decent client list. Similar sort of list is for Leather wear as well.
One of the negatives atleast for Europe and USA is that there is lot of animal right activism from groups like PETA and against using leather products. They advocate using faux leather even for products like handbags, belts etc. So the company may find it difficult to grow sales reasonably due to this.
Another negative is that all manufacturing facilities are based in and around North India. Any natural calamity like the Chennai Floods is likely to be a big disruptor as the company cannot manage to stop fall in production by supply from other locations if its production was geographically distributed evenly.
The dividend payment is okayish. There are no details given on the board of directors. So tough to make a call in the absence of the annual reports.
It is a company that has stayed off the media and investors radar and rightly so because no efforts are being made to market themselves to investors or consumers.
Their website for selling Allen cooper shoes directly is also buggy and has a big signup form. There is no option to sign in using Facebook or Google+. There is very little incentive for customer to sign up and buy from here.
I would avoid the company. Even if it looks cheap, the disclosures are not good and until we see management ready to explain the brand building process and marketing domestically and internationally, there will be no clarity and we would be taking a shot in the dark.
Disclosure: not invested.