Rupa & Company Ltd Q1 FY25 – FY25: Sales Var -12.6%, PAT Var -36.2%, P/E 20x – Hosiery Giant or Elastic Band on the Verge of Snapping?
1. At a Glance
Rupa & Company Ltd, the self-proclaimed emperor of baniyans and chaddis, is sitting with a market cap of around ₹1,640 crore and a stock price of ₹206 (down a spicy 31.5% YoY). While Page Industries struts around with premium Jockey tags, Rupa is still fighting to convince us that “Frontline baniyan” is haute couture. In Q1 FY25, sales shrank 12.6% YoY to ₹184 crore and profits dropped 36.2% YoY to ₹6.67 crore — basically, the elastic is getting loose. The company flaunts a P/E of ~20.6 vs industry’s 28.9, but with a ROE of just 8.4% and ROCE of 10.9%, this looks less like alpha and more like “beta baniyan.”
2. Introduction
If India had a hall of fame for innerwear ads, Rupa would be on top. From Govinda shaking his hips to Ranveer Singh screaming in neon underwear, they’ve tried everything to convince you that buying a baniyan is a life choice.
But here’s the tragicomedy: sales growth over the last 5 years? A pitiful 4.9% CAGR. Profit growth? Basically flatlining. Meanwhile, Page Industries sells Jockey like it’s Gucci for men’s stomachs.
Rupa is everywhere — 150,000+ retail outlets, 9,000 SKUs, and even on Myntra, Flipkart, and Amazon. Yet, they still can’t break into the premium perception game. It’s like being invited to the party but still standing at the snacks counter because nobody wants to dance with you.
So the question is: is Rupa a turnaround underwear story, or will it remain the forever-discount rack at Big Bazaar?
3. Business Model – WTF Do They Even Do?
In plain words: they stitch fabric, bleach yarn, dye some colours, slap celebrity endorsements, and ship to your local baniyan shop. Their business verticals cover innerwear, winter wear, kidswear, women’s wear, and casual wear — though 88% of sales come from men’s products.
Distribution is their actual superpower: 1,500+ dealers, 4 warehouses, 7 sales offices, and shelf space in 1,400 modern retail stores. Think of it like India’s underground hosiery mafia, but fully legal.
But wait, there’s drama:
Subsidiaries like Imoogi and Femmora tried entering women/kidswear. Still searching for traction.
The Euro brand now just earns royalties (who knew underwear could retire early?).
Their Bangladesh subsidiary exists on paper but makes less money than a roadside baniyan stall.
So, while they act like a diversified apparel company, in reality, it’s still 90% baniyans and briefs.
4. Financials Overview
Source table
Metric
Latest Qtr (Q1 FY25)
YoY Qtr (Q1 FY24)
Prev Qtr (Q4 FY24)
YoY %
QoQ %
Revenue
₹184 Cr
₹210 Cr
₹415 Cr
-12.6%
-55.7%
EBITDA
₹12.2 Cr
₹18.0 Cr
₹45.9 Cr
-32.2%
-73.3%
PAT
₹6.7 Cr
₹10.5 Cr
₹30.6 Cr
-36.2%
-78.1%
EPS (₹)
0.84
1.32
3.85
-36.2%
-78.2%
Annualised EPS = 0.84 × 4 = ₹3.36. At CMP ₹206, the recalculated P/E is 61.3.
So, while screener shows P/E 20x (TTM), forward math says 61x. Which is basically Rupa’s version of “vanishing cream.”
5. Valuation Discussion – Fair Value Range Only
Method 1: P/E Industry average P/E = 28.9. Rupa EPS (FY25E annualised) = ₹3.36. Fair Value Range = ₹97 – ₹115.
