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Stock Idea >> KDDL
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KDDL
Reco: Buy
Stock Idea
Time to dial KDDL
CMP: Rs216
Key points
Company details
Price target:
Rs300
Market cap:
Rs195 cr
52-week high/low:
Rs268/69
NSE volume:
(No of shares)
0.3 lakh
BSE code:
532054
Sharekhan code:
KAMLADLS
Free float:
(No of shares)
0.4 cr
Shareholding pattern
Foreign
5%
Public & Others
28%
Non-promoter
corporate
14%
Promoters
53%
Price chart
280
260
240
220
200
180
160
140
120
100
80
60
Steady growth in manufacturing business and free cash to support retail growth
ahead: KDDL (erstwhile Kamla Dials and Devices) is one of the largest manufacturers
of watch dials and hands, serving both international and domestic clients. With a
revival in growth, the demand for premium and luxury watches, and their
components is expected to grow in double digits. The management expects the
dial and hand vertical to grow at 10-15% over the next two to three years. The
margins may be maintained at the current levels or may improve slightly over the
next two years led by value addition and absorption of fixed costs while the capex
may remain low at Rs10-12 crore per annum, thereby generating free cash. The
free cash could be used to support the strong growth in the retail business.
Ethos, luxury watch retailer, deploying both brick and click to drive sales: KDDL is
also present in luxury watch retailing in India via its 75% subsidiary, Ethos. Ethos
employs a very intelligent combination of brick and click models to serve its customers,
drive sales and enhance profitability. The company retails over 60 high-end luxury
watch brands through its 42 pan-India stores. It also generates leads through its
online retail portal which enables it to improve its asset turnover and reduce its
inventory cycle, thereby adding to the overall margin and profitability. We believe
that aided by the online platform Ethos is very well placed to cash in on the strong
growth opportunity in the high-growth luxury watch market.
Unique business + strong growth potential available at undemanding valuation;
initiate Buy with a price target of Rs300: We like Ethos’ unique high-end watch
retailing business, which is expected to grow manifold by cashing in on the growth in
the luxury watch segment and the increasing trend towards online e-tailing. This
unique high-growth potential business along with a steady manufacturing business
that generates free cash is attractively priced at the current levels and offers
significant returns over the medium to long term. We put a Buy rating on the stock,
valuing KDDL using the SOTP method (the manufacturing vertical is valued at 6x its
FY2016E earnings + the high-end watch retailing subsidiary Ethos is valued at 1x its
FY2016E sales) to arrive at a price target of Rs300.
Dec-14
Sep-14
Jun-14
Mar-14
Dec-13
Key risk: A lower than expected improvement in the overall discretionary demand
would pose a risk to our revenue and earnings estimates.
Price performance
(%)
1m
3m
6m 12m
-8.5
5.2
68.8 188.3
Relative -6.4
to Sensex
4.0
54.3 114.7
Absolute
Valuations (consolidated)
Particulars
Net sales (Rs cr)
Growth (%)
Operating profit (Rs cr)
Growth (%)
Operating profit margin (%)
Net earnings post-minority int.
Growth (%)
Adjusted EPS (Rs)
PER (x)
RoCE (%)
RoE (%)
Sharekhan
2
FY2013
FY2014
FY2015E
FY2016E
FY2017E
271.8
17
18.1
-36
6.7
(2.8)
NA
NA
NA
12.8
NA
334.7
23
30.1
66
9.0
8.5
404
9.9
21.7
14.7
18.6
403.3
20
40.8
35
10.1
9.8
15
10.7
20.1
15.2
18.1
497.1
23
50.7
24
10.2
13.4
36
14.7
14.7
15.5
19.5
613.1
23
63.0
24
10.3
17.9
34
19.6
11.0
15.7
20.1
December 22, 2014
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Company background
over FY2009-14 and constitutes 77% of the consolidated
revenues in 1H FY2015. We believe the stock’s valuations
have yet to factor in this transformation of the company
from a manufacturer into a retailing company.
KDDL (erstwhile Kamla Dials and Devices) operates a
manufacturing vertical and a retail vertical. The
manufacturing vertical has three divisions and
manufactures watch components like hands and dials;
precision engineering tools that find application across
industries like telecommunications, engineering and
defence; and packages made out of paper, plastic and PU
to serve a host of industries including writing instruments
and jewellery.
Retail revenues grew at 37.4% CAGR over FY2009-14
250
220
200
Manufacturing vertical: Currently it contributes 34% to
the consolidated top line of KDDL and over 70% to the
operating profit of the consolidated entity. Of the total
turnover of the manufacturing business, watch
components (dials and hands) account for around 80% of
the turnover while 15% comes from the precision
engineering segment and the remaining 5% is contributed
by the packaging division.
%
7.4
R3
CAG
150
174
127
90
100
60
50
0
FY10
Retail vertical: Ethos (a 75% subsidiary of KDDL) is a
luxury watch retailing company that retails high-end
international luxury brands. It ventured into retailing of
luxury watches in 2003 and over the last 11 years has
established 42 premium watch boutiques. From retailing
watches using the brick-and-mortar model the company
entered the e-tailing segment in 2012 with the
commencement
of
its
online
portal,
www.ethoswatches.com.
FY11
FY12
FY13
FY14
Strong growth expected in luxury watch market: The
luxury watch market is expected to grow at 30% CAGR,
ie double the rate of growth in the overall watch market,
over the next three years from a Rs3,000-crore market
in 2012 to a Rs6,500-crore market in 2017. Ethos, with
its comprehensive collection of marquee and luxury
brands, and unique reach via online as well as store
presence is well positioned to cash in on this booming
opportunity. We expect Ethos’ revenues to grow at a
CAGR of 27.4% over FY2014-17 from Rs220 crore in
FY2014 to Rs455 crore in FY2017. The revenue growth
would be backed by an increasing contribution from the
online lead generation platform (which currently
contributes 24-25% to the overall sales) and a consistent
increase in the store presence. By 2017 we expect Ethos
to add around six to seven new stores taking its store
count to 49 stores from 42 stores at present.
Investment arguments
KDDL transforming from a manufacturing company into
a retail play: KDDL started as a manufacturer of watch
components (dials and hands) for the Indian market and
later took its business to the global level. Sensing a strong
opportunity in the Indian luxury watch industry, it also
entered the business of retailing luxury watches under the
store brand, Ethos, in 2003. The retailing subsidiary Ethos,
which accounted for 40% of its revenues in FY2009, has
grown at a compounded annual growth rate (CAGR) of 37.4%
Revenue mix leaning towards retailing business
Revenue mix—FY2009
Revenue mix—FY2014
Manufacturing
60%
Retail
40%
Revenue mix—H1FY2015
Manufacturing
23%
Manufacturing
34%
Retail
66%
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December 22, 2014
Retail
77%
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Ethos’ store presence
Increasing hits and visits to the website, www.ethoswatches.com
50
45
45
40
35
600,000
42
500,000
37
35
400,000
30
25
25
300,000
20
20
200,000
15
100,000
10
5
Sep-14
Jul-14
May-14
Mar-14
Jan-14
Nov-13
Jul-13
Sep-13
H1FY15
Mar-13
FY14
May-13
FY13
Jan-13
FY12
Nov-12
FY11
Sep-12
FY10
Jul-12
May-12
0
0
Steady increase in online leads, which now contribute 25%
to the overall sales
Expansion of Ethos’ EBITDA margin the key focus: Ethos
being in the early stage of its life cycle has high fixed
costs, like store set-up cost, and maintains an inventory.
As the revenues grow and the stores reach their optimum
footfalls, conversion and revenue yield, the fixed cost
would be absorbed resulting in an improvement in the
earnings before interest, tax, depreciation and
amortisation (EBITDA) margin.
30.0%
25.0%
20.0%
15.0%
10.0%
The company has chalked out a four-pronged strategy for
improving the EBITDA. One, it aims to lay a greater emphasis
on acquiring customers by reaching out to them online, thereby
reducing the cost of acquisition. The average cost of acquisition
via the online lead generation mode is much lower compared
with the store mode. Two, it seeks better negotiation with
vendors for higher margins. Three, it plans to lower the
discounts and have stricter controls. Last, it proposes to have
value offerings and prune the non-performing stores (it has
already closed four to five stores in its drive to improve
profitability; hence going forward, it would expand its physical
presence at a measured pace).
5.0%
Sep-14
Jul-14
May-14
Mar-14
Jan-14
Nov-13
Sep-13
Jul-13
May-13
Mar-13
Jan-13
Nov-12
Sep-12
Jul-12
May-12
0.0%
Attractive economics of mature stores
8.0
9.9
7.2
7.1
7.0
9.8
5.5
6.0
9.7
5.0
4.0
We believe each of these efforts will enable Ethos to
significantly improve its margins. We expect its EBITDA
to more than triple from Rs9 crore in FY2014 to Rs31 crore
in FY2017, led by a revenue growth as well as a strong
margin improvement. We expect a strong margin
improvement of 280 basis points (BPS) over FY2014-17
from 4.1% in FY2014 to 6.9% in FY2017.
3.5
9.6
3.0
9.5
2.0
9.4
1.0
0.0
9.3
FY11
FY12
FY13
FY14
Average sales per store for mature stores (Rs cr)
EBITDA margin per mature store (%)
Ethos’ business financials
Particulars
Revenues
COGS
Gross profit
Gross profit margin (%)
Employee expenses
Other expenses
EBITDA
EBITDA margin (%)
FY11
90
66
24
26.7
5
14
6.0
6.7
FY12
127
92
35
27.6
8
21
6.0
4.7
FY13
174
127
47
27.0
11
28
8.0
4.6
Sharekhan
FY14
220
162
58
26.4
13.5
35.5
9.0
4.1
4
FY15E
277
202
75
27.0
15
44
15.5
5.6
December 22, 2014
F16E
356
259
97
27.2
19
55
22.4
6.3
FY17E
455
331
124
27.2
24
68
31.4
6.9
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Consolidated revenues to grow at 22.4% CAGR over FY2014-17
Expansion to be funded via equity dilution: KDDL plans
to fund the retail growth and expansion via equity dilution,
as it is already leveraged. Currently, its debt/equity ratio
stands at 2x. It thus plans to dilute its stake in its subsidiary,
Ethos. To carry out the expansion it currently requires Rs2025 crore. Based on 1x net sales, we believe the company
will have to dilute around 8-10% of its stake to fund the
expansion and thus its stake in Ethos would come down
from 75% at present to around 65%. We have factored this
dilution in our estimates and valuation.
700
35.0
613
600
30.0
497
500
400
300
25.0
403
20.0
335
272
233
15.0
200
10.0
100
5.0
-
Steady growth in manufacturing business and free cash
to support retail growth ahead: The company is one of
the largest manufacturers of watch dials and hands,
serving both international as well as domestic clients.
With a revival in growth, the demand for premium and
luxury watches, and their components is expected to
grow in high double digits. The management expects the
dial and hand vertical to grow at 10-15% over the next
two to three years. While the margins are likely to remain
steady with a scope for improvement led by value
addition and absorption of fixed costs, the capital
expenditure (capex) is likely to remain low at Rs10-12
crore per annum, resulting in free cash that can be
used to support the strong growth in the retail business.
FY 12
FY 13
177
120
100
40.0
40.8
40.0
20.0
30.1
28.2
18.1
20.0
(20.0)
(40.0)
10.0
(60.0)
0.0
FY13
FY14
FY15E FY16E FY17E
operating profit (Rs cr) 21.15
% grow th
Valuations
We like Ethos’ unique high-end watch retailing business
that is expected to grow manifold by cashing in on the
growth in the luxury watch segment and the increasing
trend towards online e-tailing. This unique high-growth
potential business along with the steady manufacturing
business that generates free cash is attractively valued
at the current levels and offers significant returns over
the medium to long term. We have valued KDDL employing
the sum-of-the-parts (SOTP) method (the manufacturing
vertical has been valued at 6x its FY2016E earnings + the
high-end watch retailing subsidiary Ethos has been valued
at 1x its FY2016E sales) to arrive at a price target of Rs300.
20.0
113
15.0
97
10.0
80
5.0
60
40
-
20
(5.0)
(10.0)
FY 12
60.0
50.7
50.0
30.0
80.0
63.0
60.0
25.0
126
104
% grow th
70.0
30.0
141
140
FY 17E
35.0
158
160
FY 16E
Consolidated operating profit trend
Manufacturing business—steady revenue growth expected ahead
180
FY 15E
Consolidated revenue (Rs cr)
FY12
200
FY 14
FY 13 FY 14 FY 15E FY 16E FY 17E FY 18E
Total rev enue (Rs cr)
% grow th
Consolidated operating profit and earnings to grow at
28% CAGR in FY2014-17: Aided by a strong 27.4% growth
in the Ethos business and a stable 12-13% growth in the
manufacturing vertical, the consolidated top line is
expected to grow at a robust 22.4% CAGR over FY201417. A good revenue growth supported by margin expansion
in Ethos would cause both the operating profit and the
net earnings to grow at 28% CAGR over FY2014-17.
Sharekhan
SOTP valuations
Business
Valuation methodology
Watch business
PE @ 6x its FY16E earnings
Equity cap
Ethos business
Stake of KDDL @ 65% valued at
1x its FY16E sales
Total M-cap
5
40.1
231.3
271.4
No. of shares
0.9
Price target
300
December 22, 2014
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Financials
Profit & Loss account (consolidated)
Particulars
Rs cr
Cash flow statement (consolidated)
Rs cr
FY13
FY14
FY15E
FY16E
FY17E
Particulars
FY13 FY14
FY15E
FY16E
FY17E
Total revenues
271.8
334.7
403.3
497.1
613.1
Materials
151.6
190.2
233.9
294.3
370.7
Employee cost
47.6
49.9
53.1
61.6
71.6
Other expenditure
54.5
64.6
75.6
90.5
107.8
253.7
304.6
362.6
446.4
550.0
18.1
30.1
40.8
50.7
63.0
10.3
Profit before tax
-3.9
7.6
Depreciation
8.6
8.0
Pre tax cash from operations
4.7 15.6
Other income/prior-period ad
1.1
3.5
Net cash from operations
5.8 19.1
Tax
0.0
2.0
Cash profit
5.8 17.1
Increase in debtors
3.0 -3.4
Increase in other current assets
-0.2 -0.1
Increase in inventories
-16.7 -22.7
Increase in loans and advances
-2.7 -3.7
Less:
Increase in creditors
-8.2 -20.5
Increase in other liabilities
4.5 -10.2
and provisions
Decrease in working capital
-13.0
0.9
Cash flow from
-7.1 18.0
operating activities
Increase in equity share capital
0.2
0.0
Minority interest
10.8 -0.2
Zero coupon convertible warrants
-0.2
0.0
Transfer to P/L/Reserves
-1.4 -4.4
Increase in loans
7.8
2.2
Deferred Tax Liability
0.2 -0.2
Cash flow from financing activities 17.5 -2.6
Increase in Investments
0.2
0.0
Increase/Decrease in
-9.6 -11.2
Cash flow from
-9.4 -11.2
investing activities
Net change in cash
1.0
4.2
and cash equivalents
Opening cash balance
7.0
7.9
Closing cash balance
7.9 12.1
14.1
9.3
23.5
0.0
23.5
4.3
19.1
-5.3
0.4
-38.1
-2.7
19.0
11.0
30.0
0.0
30.0
5.6
24.4
-3.1
0.0
-45.8
-2.0
25.1
13.1
38.2
0.0
38.2
7.2
31.0
-3.5
0.0
-57.3
-3.0
-4.4
-8.7
-21.1
-4.3
-17.8
-5.4
-32.5
-13.3
-25.5
-1.0
-40.5
-9.5
0.0
2.0
0.0
2.0
18.2
0.0
22.1
0.8
-15.2
-14.4
0.0
3.7
0.0
3.7
17.9
0.0
25.4
0.0
-26.0
-26.0
0.0
6.0
0.0
6.0
27.5
0.0
39.5
0.0
-30.6
-30.6
-5.7
-1.7
-0.6
12.1
6.4
6.4
4.7
4.7
4.2
Total operating cost
Operating profit
% of sales
6.7
9.0
10.1
10.2
Other income
1.1
3.5
-
-
-
PBIDT
19.3
33.6
40.8
50.7
63.0
Interest
13.3
14.2
15.3
17.0
18.9
6.0
19.5
25.4
33.7
44.2
PBDT
Less Depreciation
8.6
8.0
9.3
11.0
13.1
Profit before tax
-2.6
11.4
16.1
22.7
31.1
0.0
2.0
4.3
5.6
7.2
-1
17
27
25
23
(2.6)
9.4
11.8
17.1
23.9
0.2
0.4
2.0
3.7
6.0
NP after Minority
interest
(2.8)
9.1
9.8
13.4
17.9
Reported PAT
(2.8)
8.5
9.8
13.4
17.9
Total tax
Total tax as % of PBT
Adjusted PAT
Minority interest
Balance Sheet (consolidated)
Particulars
Equity capital
Reserves and surplus
Net worth
Minority interest
Deferred tax liabilities
Total loans
Long-term loan
Short-term loan
Capital employed
Assets
Net block
Capital WIP
Investments
Current assets
Other current assets
Inventories
Sundry debtors
Cash and bank balance
Loans and advances
Less: Current liabilities
and Provisions
Sundry creditors
Other current liabilities
Provisions
Net current assets
Capital employed
Rs cr
FY13
FY14
FY15E
FY16E
FY17E
9.1
34.4
43.5
18.5
4.5
95.5
39.2
56.2
161.9
9.1
39.1
48.2
18.3
4.3
97.7
40.9
56.8
168.3
9.1
50.8
59.9
20.2
4.3
115.9
37.1
78.7
200.3
9.1
67.9
77.1
24.0
4.3
133.8
40.9
92.8
239.0
9.1
91.9
101.0
30.0
4.3
161.3
45.3
116.0
296.5
75.9
1.1
0.8
167.5
0.4
113.6
17.3
7.9
28.3
83.4
79.2
1.0
0.8
201.4
0.5
136.2
20.6
12.1
32.0
114.0
86.1
241.3
0.1
174.3
25.9
6.4
34.6
127.2
101.1
290.6
0.1
220.1
29.0
4.7
36.6
152.6
118.6
353.8
0.1
277.4
32.5
4.2
39.6
175.8
47.9
28.7
6.8
84.1
161.9
68.3
35.8
9.9
87.4
168.3
72.7
36.3
18.1
114.2
200.3
93.9
40.6
18.1
137.9
239.0
111.7
46.0
18.1
177.9
296.5
Sharekhan
Key ratios (consolidated)
Particulars
Sales growth (%)
Operating profit growth (%)
17
FY14 FY15E
23
20
FY16E FY17E
23
23
-36
66
35
24
24
Gross margins (%)
44.2
43.2
42.0
40.8
39.5
Operating profit
margin (OPM) (%)
7
9
10
10
10
Debt/equity
2.2
2.0
1.9
1.7
1.6
RoE (%)
NA
19
18
20
20
7
13
15
16
16
RoCE (%)
Adjusted EPS
(3.1)
9.9
10.7
14.7
19.6
Book value
47.7
52.8
65.7
84.5
110.7
P/E
NA
20.7
20.1
14.7
11.0
P/BV
4.5
4.1
3.3
2.6
2.0
15.6
9.4
7.1
6.1
5.3
M-cap/Sales
0.7
0.6
0.5
0.4
0.3
EV/Sales
1.0
0.8
0.7
0.6
0.5
EV/EBITDA
6
FY13
December 22, 2014
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Annexure
• The manufacturing division struggled to stay afloat in
FY2013 and reported a loss owing to the following
reasons: (a) the global macro environment had
witnessed a slowdown and hence the overall top line
had declined for the company; (b) owing to
underutilisation of export plants the company had
merged its unit called Himachal Fine Blanks with itself
which had resulted in a write-off of Rs50 lakh for the
year; (c) certain lower-end capacities had also been
closed resulting in more write-offs; (d) the company
also undertook manpower rationalisation which
resulted in a write-off of Rs1.5 crore; and (e) the export
incentive of 4% on watch dials that was available to
the company up till FY2012 was reduced to 2% in
FY2013.
The watch component business
• The company manufactures dials and hands as part of
the watch component business which are exported as
well as sold in the domestic market. The company has
a capacity to manufacture 4.5 million pieces of dials
and 47 million pieces of hands. It has two dial
manufacturing units and one dial assembling unit in
north India; it also has two hand manufacturing units in
Bengaluru.
• Roughly 70-75% of the watch components are exported.
In dials, about 60% is exported while 40% is sold in the
domestic market. The company has around a 30-35%
market share in the global dial market. The
competition in this segment is increasing and the
company has to largely compete with the Thai and
Chinese players. In the hands segment, 75% of the total
manufacturing is exported and this segment provides
high margins (averaging at 30-35% excluding the central
cost) as against a margin of 12-13% in case of dials.
The market is largely concentrated with only five
independent global players and KDDL enjoys a 90-95%
market share.
• The infrastructure requirements are largely in place
to take care of growth over the next three to four
years. On the capex front, the company plans to incur
a capex of Rs10-12 crore on the tolling and rebalancing
fronts.
The precision and packaging businesses
• The precision business accounts for around 15% of the
manufacturing turnover. This division largely
manufactures high-end tools and stamping products which
find application in industries such as telecommunications,
defence and engineering. This is largely an order-driven
business wherein the clients include names like ABB,
Larsen and Toubro, Siemens and Dellcom.
• In the domestic market, it has clients like Titan and
Timex while in the international market a large part
of its revenues comes from the Swiss watch
manufacturers like Rollex, Swatch and Fossil.
• The company expects this vertical to grow at an average
rate of 10-15% over the next two to three years, with the
growth in the dials likely to come from an increase in the
average realisation (in the dial segment, owing to high
competition in the low end of the pyramid, the company
is shifting its focus towards mid to higher-end dials that
would drive the growth of the division). In the hands
market, the company is looking for a volume-led growth,
exploring new geographies (Hong Kong) and increasing
the turnover from the domestic clients as well.
• At present the manufacturing unit is running at 5560% capacity utilisation and there exists a wide scope
for growth in this segment. The management expects
over 30% growth in this segment over the next three
years without the need for any additional investment.
• The packaging business provides packaging products
to an array of industries like jewellery, pens and gifting,
and contributes 5% to the manufacturing turnover, thus
constituting a meagre 1.5-2.0% of the consolidated
turnover. The business has just broken even.
• The company also earns a 5% incentive for exports in
the dial and watch component categories which forms
part of its operating income.
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Ethos—the luxury watch retailing business
• Its stores are classified into two heads, Prestige and
Luxury stores, based on the target audience. The
Prestige stores retail watches with the price tag ranging
from Rs10,000 to Rs2 lakh per piece, targeted at
professionals and entrepreneurs showcasing their early
career success. This category is expected to grow at
20-25% CAGR over the next three years. Currently, the
company has 34 stores in this format. The Luxury stores
retail watches, each priced at over Rs2 lakh and
targeted at high net worth individuals, industrialists,
professionals and celebrities. This sub-segment is
expected to grow at a CAGR of over 30% in the next
three years. The company currently has eight stores
under this format. Apart from these stores, the
company is tying up with various brands for a monobrand store pattern. It has so far tied up with Rado for
the same.
• Ethos (a 75% subsidiary of KDDL) is a luxury watch
retailing company that retails high-end international
luxury brands. It ventured into retailing of luxury
watches in 2003 and over the last 11 years has
established 42 premium watch boutiques. Retailing
watches through the brick-and-mortar model, the
company entered the e-tailing segment in 2012 with
the commencement of its online portal,
www.ethoswatches.com.
• It is the authorised retailer of over 60 luxury brands
and distributes through distinct retail formats
addressing various market segments. It has 42 retail
outlets. Its offerings range from Rs10,000 per piece to
over Rs2 lakh a piece. A few of the brands that it retails
include Swatch, Richemont, Rolex and Cartier.
Ethos store formats
Luxury
The rich and the famous
Prestige
Showcasing the success
Target audience
HNIs, industrialists, professionals,
celebrities
Professionals, entrepreneurs
showcasing their early career
success
Market size
Rs600 crore, expected to grow at
30% CAGR
Rs1,500 crore, expected to grow at
20% CAGR
Price range
Rs2 lakh and above
Rs10,000 to Rs200,000
Ethos’ presence (# stores)
8 stores in Mumbai, New Delhi,
Bengaluru, Chandigarh
Store location
34 stores in Ahmedabad, Amritsar,
Bengaluru, Bhopal, Chandigarh,
Chennai, New Delhi, Gurgaon,
Hyderabad, Ludhiana, Mumbai,
Nagpur, Surat, Vadodra, Thane
Malls, airport duty-free and domestic terminals
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Brands available at Ethos
retailers do not sell their brands online yet. The
company has readied itself with the back-end
infrastructure to complete the last-mile sales also
online, once the luxury watch retailers allow the same.
• The company follows a unique approach whereby its
online venture creates a lead for a purchase and the
final purchase of the product is either made at one of
the stores or in certain cases home delivered. Thus,
the online channel is used to generate leads which
forms the first leg towards sales culmination by the
company. The company does not complete the sales
transaction online because many luxury watch
• Over the last three years, the revenue contribution
from the online platform has increased stupendously
from 5% of the total revenues in FY2012 to around 2425% in H1FY2015.
Sharekhan Limited, its analyst or dependant(s) of the analyst might be holding or having a position in the companies mentioned in the article.
For Private Circulation only
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ITNL
IRB Infra
Jaiprakash Associates
Larsen & Toubro
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Punj Lloyd
Automobiles
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M&M
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SBI
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Hindustan Unilever
ITC
Jyothy Laboratories
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Zydus Wellness
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CMC
Firstsource Solutions
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Infosys
Persistent Systems
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Thermax
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