Sree Leathers, The retail brand

NSE: SREEL

Sree leathers, the name itself a brand setting unprecedented retail brand. Sree Leather is a pure retail store which just passes footwears from the manufacturer to your feet and the margin is its profit. The Kolkata based is trying a lot to overcome the stereotype to prove that non brand companies can manufacture quality products. The brand revolves around leather shoes, Casual wear, Handbags, Jerkins, etc for Men, Women and children of all ages.

 Late Suresh Chandra Dey, the father of Sreeleathers, was a freedom fighter. Late Suresh Chandra Dey wanted to nurture a dream to make durable and decent shoes that could be affordable for every Indian. This dream came true when Sreeleathers was founded in 1952.
Satyabrata Dey, the Managing Director 68.69% of Sree Leathers

Sree leather has established itself in some important cities with more than 10,000 footfalls per day on all its stores without starting an advetisement campain or expanding. The word of mouth made the marketing expenses zero.

Astonishing facts

  • The company doesn’t spend a penny in Research and Development because they don’t have one.
  • No imported machines.
  • 34 Permanent employees,
  • Sree leather owns all its outlets which made them survive the pandemic.
  • 10,000 footfalls a day, which almost triples at festival seasons and trade conversion of 80%.
  • The inventory accommodates goods which are exactly needed for a day.

For more than 25 years the small, well structured organization is exporting to Germany, UK, Greece and The Netherlands through a Joint Venture. The international footprint is still in motion to tap revenues from Myanmar, Thailand and Dubai. The company is still in its expansion phase, also in motion to hit 100 from the initial 35 stores.

Peer comparison

Sree leather tops with 16.5% of net profit while the close competitors Bata, Mirza. Even though the store a brand by itself has no one in its premises, the price range targets the Middle class population having 800 the maximum from 100. Since India is a country of moderate take homers the sales will never cease.

  • Mirza the closest competitor owns high quality assets acutely established brands (Red Tape), high inventories but lacks sales.
  • As far as Bata is concerned, the brand is depleting and market share is reducing because of less cost new comers.
  • Relaxo the growing brand which plays in the sports section won’t bother the sales of Sree leathers.

Financials

  • The debt amounts to zero and the management has never stepped into the bank for loans and all the retail outlets are their own buildings.
  • The promoter stake has been increased when the all the businesses were failing because of Corona.
  • The Debt to equity ratio may cease to exist.
  • The net income has increased by 50% after launching its online store.
  • The free cash flows are positive double digits for the past 8 years.
  • The inventories have been increasing in sync with the sales since 2012.
sree leathers

Good sign

  • Since the company is in its growth phase the dividends haven’t shown faces once the business is set dividends might run into your account.
  • The share buyback has been confirmed 3 months ago within the price of 160 which is an auspicious sign of a growing business.
  • The Domestic institutions haven’t stepped in yet once they do the price may skyrocket. Time for you to react.
  • Moreover the administration avoids partnerships which may lead to lack of control and incorporates franchising.
  • They avoid setting up stores in malls which costs much and decreases face counts.

Accumulate the stock on dips and wait for the business cycle to turn. Since it’s not under the institutional radar the price fluctuates according to the mood of the public. Buyback may turn heads. Franchising has just now started.





More the patience, More is the reward.

7 Comments

  1. Hey would you mind stating which blog platform you’re working with? I’m looking to start my own blog in the near future but I’m having a difficult time making a decision between BlogEngine/Wordpress/B2evolution and Drupal. The reason I ask is because your design and style seems different then most blogs and I’m looking for something unique. P.S Sorry for getting off-topic but I had to ask!

    Like

  2. We are a group of volunteers and starting a brand new scheme in our community. Your website provided us with valuable info to paintings on. You’ve done a formidable task and our entire neighborhood shall be grateful to you.

    Like

Comments are closed.