Cantabil Retail India Ltd: 30% TTM Profit Growth – Fashionably Profitable, Inventory Hoarder Edition

1. At a Glance

Cantabil Retail isn’t trying to be Louis Vuitton, and thank God for that. Instead, it’s a ₹2,120 crore mid-market apparel brand that’s spent 35 years perfecting the art of selling shirts, trousers, and jackets to India’s growing middle class. With 35.4% PAT CAGR over 5 years and an ROE of 20.8%, the business has the kind of growth Page Industries used to have… except it also keeps inventory like it’s stocking up for an apocalypse — 477 days worth in FY25. Stock trades at a P/E of 27.1, not cheap, but margins are solid at ~29% OPM.

2. Introduction

Cantabil started in 1989 when “fashion retail” in India meant a Bata store and a tailor. Over decades, it’s gone from a small North India brand to a pan-India network of exclusive brand outlets (EBOs) catering to men, women, and kids in the economy-to-mid range. It designs, manufactures, and retails — controlling the full value chain for better margins.

The story is straightforward: steady store expansion, consistent sales growth (16% CAGR 5 years), and a controlled brand identity. The flip side? Cash conversion cycle is 367 days, meaning most of its “profits” are still hanging on the racks.

3. Business Model (WTF Do They Even Do?)

• Design & Manufacturing: In-house designs, domestic manufacturing.
• Retail: 400+ EBOs across India,