Garment Mantra Lifestyle Ltd., established in 2011, has woven its way into the Indian textile industry as a manufacturer of value-added clothing and home textiles. Headquartered in Tiruppur, Tamil Nadu (India).
With a current share price of ₹7.30 (as of February 23, 2024), investors are eager to understand the potential trajectory of Garment Mantra in the coming years. This analysis dives deep into the company’s fundamentals, future prospects, and expert predictions to unveil the anticipated share price targets for 2024, 2025, 2026, 2028, and 2030.
Table of Contents
Garment Mantra Company Overview
Historical Evolution
Garment Mantra Lifestyle Ltd, established in 2011, has carved a niche in the Indian textile and apparel landscape. Headquartered in Tirupur, the “Knit City of India,” the company has steadily grown into a prominent manufacturer and seller of fabrics, garments, and accessories.
2011: Birth of Junction Fabrics, weaving garments and dreams in Tirupur. 2012-2020: Steady growth, expanding fabrics & styles for all ages. Quality & fashion, hand-in-hand. 2021: Transformation: Garment Mantra emerges, “Price Mantra” stores open, Jannat Fabrics joins the family. 2022: Dreams get bigger: Centralized facility in Surat, retail expansion continues. 2023: Challenges arise: profits dip, debt rises, but the spirit remains strong.
- Founded: 2011
- Headquarters: Tirupur, India
- Products: Fabrics, knitted garments, accessories
- Business Model: B2B
Financial Indicators
- Garment Mantra Life is a small-cap textile company with a market capitalization of ₹81.01 Cr.
- The company has been showing poor sales and profit growth in recent years.
- The company has a high PE ratio of 110.70, indicating it may be overvalued.
- The company has a low debt-to-equity ratio of 0.64, indicating a healthy balance sheet.
Strengths:
- High promoter holding of 50.1%.
- Strong operating leverage of 9.07.
Weaknesses:
- Poor sales and profit growth in recent years.
- High PE ratio.
- Low return on assets (ROA) of 0.64%.
- Poor inventory turnover ratio of 4.26.
Key Ratios:
- PE Ratio: 110.70 (High)
- Debt-to-Equity Ratio: 0.64 (Low)
- Return on Assets (ROA): 0.64% (Bad)
- Current Ratio: 1.67 (Good)
- Return on Equity (ROE): 1.24% (Low)
- Sales Growth: 2.61% (Poor)
- Operating Margin: 2.84% (Low)
- Dividend Yield: 0% (No dividend)
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Recent Developments
Focus on Export Market:
- Rs 14 crore export order: The company received its first export order, marking a significant step towards international expansion. This order showcases their capability to compete in the global market.
- Expanding network: They are likely to explore opportunities in international markets further, aiming for similar orders in the future.
Domestic Market:
- Continued dominance: Garment Mantra maintains a strong presence in tier 2 and 3 cities of India, offering affordable and high-quality clothing.
- New facility in Gujarat: The company plans to open a new warehouse facility to improve regional access to inventory and enhance services for customers. This expansion aims to boost revenue and operational efficiency.
Social Responsibility and Sustainability:
- Women empowerment program: Their initiative to train and empower women continues, contributing to their financial independence and community development.
- Blood donation camps: They remain committed to social responsibility by regularly organizing blood donation drives.
Awards and Recognition:
- Top rankings: Garment Mantra was recognized as one of the “Top 10 Textile and Garment Manufacturing Companies 2022.” Additionally, Ashmita Aggarwal, Director-Production, received the “Top 10 Women Entrepreneur in Textile and Clothes 2022” award.
Role in the Garment Industry
Core Business Model
Garment Mantra Life is a Tirupur-based garment manufacturing company that operates on a B2B model. They primarily manufacture and sell their own branded clothing products to wholesalers. While information about their specific sustainability initiatives is limited, here’s what we know about their role in the garment industry:
Core Business Model:
- Manufacturing: Garment Mantra Life owns and operates two state-of-the-art manufacturing units within the Netaji Apparel Park in Tirupur.
- Wholesale: They focus on supplying wholesalers with premium quality garments, targeting bulk orders.
- Product Range: Their product range includes a variety of apparel categories, catering to both men’s and women’s wear.
Sustainability Initiatives
- Material Sourcing: Using organic or recycled materials, partnering with sustainable fabric suppliers.
- Production Processes: Optimizing water and energy usage, adopting cleaner dyeing and finishing techniques.
- Waste Reduction: Minimizing fabric waste through efficient cutting practices, upcycling scraps into new products.
- Labor Practices: Ensuring fair wages and working conditions for their employees, partnering with ethical factories.
- Transparency: Providing more information about their sustainability efforts and progress on their website or sustainability reports.
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Garment Mantra Share Price Analysis
Current Share Price Dynamics
Garment Mantra Lifestyle Ltd. (GML) is experiencing a strong upward trend with its share price reaching a new 52-week high of ₹7.30 ( 22 February 2024 ) today. This represents a significant gain of 18.68% in a single day and an impressive 113.49% increase from its 52-week low of ₹3.8.
- Garment Mantra Lifestyle Ltd.’s share price is currently at ₹8.07, marking a new 52-week high and a significant gain of 18.68% today.
- The stock has been on a strong upward trend, gaining over 69% in the past 6 months and 57% in the past year.
Technical Analysis
- Strong momentum: GARA has a Trendlyne Momentum Score of 72.7, indicating strong technical strength.
- Overbought conditions: RSI and MFI are both above 80, suggesting the stock may be overbought and due for a pullback.
- Bullish moving averages: GARA is trading above all its major moving averages (50, 100, and 200-day), indicating an uptrend.
- High volume: Today’s trading volume is significantly higher than usual, suggesting increased investor interest.
- New 52-week high: GARA reached a new high of ₹8.16 today, indicating strong buying pressure.
Shareholding Structure of Garment Mantra
| Investor Type | Percentage |
|---|---|
| Promoters | 50.11 |
| Foreign Institutional Investors | 0.12 |
| Public & Other | 48.44 |
| Corporate Holding | 1.34 |
Annual Results and Financial Performance
In-Depth Analysis of 3 year Annual Results
| Metric | 2021 | 2022 | 2023 | CAGR (3Y) |
|---|---|---|---|---|
| Revenue (Cr.) | 84.09 | 94.38 | 106.63 | 4.46% |
| Net Profit (Cr.) | 1.04 | 0.73 | 0.44 | -57.69% |
| Profit Margin (%) | 1.23 | 0.77 | 0.41 | -59.35% |
| Debt-to-Equity Ratio | 0.63 | 0.65 | 0.64 | -1.59% |
| Interest Coverage Ratio | 3.64 | 2.43 | 1.51 | -58.80% |
| Inventory Turnover Ratio | 5.04 | 4.67 | 4.26 | -3.19% |
| Sales Growth (%) | – | 10.03% | 2.61% | N/A |
| P/E Ratio | N/A | N/A | 110.70 | N/A |
| Dividend Yield (%) | 0.00 | 0.00 | 0.00 | N/A |
Financial Performance:
- Revenue: Garment Mantra Life’s revenue has seen a modest increase over the past three years, growing from ₹84.09 crores in 2021 to ₹106.63 crores in 2023. This represents a CAGR of 4.46%. However, this growth is lower than the industry average, indicating that the company may be losing market share.
- Profitability: The company’s profitability has declined significantly over the past three years. Net profit has fallen from ₹1.04 crores in 2021 to ₹0.44 crores in 2023. This represents a decline of 57.69%. The company’s profit margin has also declined from 1.23% in 2021 to 0.41% in 2023. This decline in profitability is a major concern for investors.
- Debt: The company’s debt-to-equity ratio has remained relatively stable over the past three years, at around 0.64. This indicates that the company has a moderate level of debt. However, the company’s interest coverage ratio has declined from 3.64 in 2021 to 1.51 in 2023. This indicates that the company’s ability to service its debt is weakening.
Operational Performance:
- Inventory Turnover: The company’s inventory turnover ratio has declined from 5.04 in 2021 to 4.26 in 2023. This indicates that the company is taking longer to sell its inventory, which is tying up capital and reducing profitability.
- Sales Growth: The company’s sales growth has been slow and inconsistent over the past three years. Sales grew by 10.03% in 2022 but only by 2.61% in 2023. This suggests that the company is struggling to attract new customers and grow its market share.
Valuation:
- P/E Ratio: The company’s P/E ratio is currently 110.70, which is significantly higher than the industry average. This suggests that the stock is overvalued, especially given the company’s poor financial performance.
- Dividend Yield: The company does not currently pay a dividend
Evaluation of Financial Health and Stability
Strengths:
- High promoter holding: 50.1% of the company is held by promoters, indicating their commitment to the business.
- Strong operating leverage: The company has an operating leverage ratio of 9.07, suggesting that a small increase in sales can lead to a larger increase in profits.
Weaknesses:
- Poor profit growth: The company has shown a negative profit growth of -43.44% for the past 3 years, which is a major concern.
- Poor revenue growth: The company’s revenue growth of 4.46% for the past 3 years is also weak and indicates stagnation.
- High PE ratio: The PE ratio of 110.70 is high, suggesting that the stock may be overvalued.
- High debt-to-equity ratio: The debt-to-equity ratio of 0.64 is moderate, but still requires monitoring.
- Inefficient inventory management: The inventory turnover ratio of 4.26 suggests that the company is holding on to inventory for too long, which ties up capital.
Other noteworthy points:
- The company has not paid any dividends in recent years.
- The company’s current ratio of 1.67 is healthy, indicating its ability to meet its short-term liabilities.
- The company’s return on assets (ROA) of 0.64% is low, indicating that it is not generating a good return on its invested capital.
- The company’s return on equity (ROE) of 1.24% is also low, indicating that it is not generating a good return for its shareholders
Garment Mantra Share Price Target 2024 to 2030
| Year | Target Price |
|---|---|
| 2024 | ₹9 – ₹11 |
| 2025 | ₹11.50 – ₹13.89 |
| 2026 | ₹14 – ₹17 |
| 2027 | ₹19 – ₹21 |
| 2028 | ₹24 – ₹28 |
| 2029 | ₹30 – ₹35 |
| 2030 | ₹37 – ₹42 |
Garment Mantra Share Price Target for 2024
The target price for Garment Mantra in 2024 is estimated to be in the range of Rs. 9 – Rs. 11 per share. Key drivers for the price target include:
- Revenue growth from new value-focused sub-brand launches
- Expanding retail presence in Tier 2/3 cities opening new markets
- Operating leverage benefits supporting margin expansion
- Growth in modern retail and ecommerce channels
However, input cost pressures and competitive intensity may pose challenges.
Garment Mantra Share Price Target for 2025
Garment Mantra’s share price target for 2025 is projected between Rs. 11.50 – Rs. 13.89 per share. Key growth factors include:
- Benefits of manufacturing capacity expansion feeding market share growth
- Higher utilization and economies of scale driving profitability
- Increasing premiumisation with new designer collaborations
- Rising online sales and omni-channel initiatives
Macroeconomic factors and execution of expansion projects are key monitorables.
Garment Mantra Share Price Target for 2026
For 2026, Garment Mantra’s target price is estimated between Rs. 14 – Rs. 17 per share. Major upside triggers:
- Accelerating e-commerce sales through digital marketing initiatives
- Entry into new emerging high-growth segments like athleisure wear
- Geographic expansion in export markets and global retail partnerships
- Strong balance sheet supporting investment-led growth
The target factors in risks like increasing competitive intensity in metros and margin pressures.
Garment Mantra Share Price Target for 2027
For 2027, Garment Mantra’s share price target is estimated to range between Rs. 19 – Rs. 21 per share. Key growth drivers:
- Operating leverage from investments in manufacturing and retail footprint
- Widening product portfolio and brand diversification
- Rising fashion awareness and demand from non-metro regions
- High double-digit earnings growth on the back of revenue gains
Macroeconomic factors and input cost movements would need monitoring.
Garment Mantra Share Price Target for 2028
Garment Mantra’s projected target price for 2028 is between Rs. 24 – Rs. 28 per share. Major factors supporting higher target include:
- Expanding international presence and growing export revenues
- Launch of new sub-brands tailored for export markets
- Improving profitability from scale efficiencies
- Increased market dominance in domestic ethnic wear segment
Execution of international expansion plans and currency fluctuations would require evaluation.
Garment Mantra Share Price Target for 2029
The 2029 target price for Garment Mantra is estimated in the range of Rs. 30 – Rs. 35 per share driven by:
- Leveraging first-mover advantage to gain market share
- Brand leadership in womenswear and menswear segments
- Launch of new designer collaborations and premium collections
- Revenue growth outpacing peers at 18-20%
The target factors in moderation in valuations from peak levels.
Garment Mantra Share Price Target for 2030
For 2030, Garment Mantra’s projected share price target is Rs. 37 – Rs. 42 per share. Key factors include:
- Venturing into new emerging segments like sportwear, lingerie, accessories etc.
- Online revenues contributing over 25% of overall sales
- Expanding global footprint with stores across developed and emerging markets
- Improving profitability with net margins exceeding 15%
Execution of diversification strategy and competitive rivalry would require monitoring.
Comparative Analysis with Competitors
| Metric | GML | Virat Industries | Titan Intech | Candour Techtex | CPS Shapers |
|---|---|---|---|---|---|
| P/E Ratio | 110.70 (High) | 19.44 | 10.67 | 20.04 | 18.79 |
| ROA | 0.64% (Bad) | 9.13% | 5.81% | 7.46% | 42.21% |
| ROE | 1.24% (Bad) | 32.44% | 22.39% | 42.64% | 72.57% |
| Debt/Equity | 0.64 (Low) | 0.00 | 0.59 | 0.09 | 0.00 |
| Sales Growth (1 Yr) | 2.61% (Poor) | 15.24% | 18.24% | 25.31% | 28.15% |
| Operating Margin | 2.84% | 9.35% | 6.36% | 8.93% | 12.36% |
Strengths:
- High promoter holding (50.10%)
- Strong operating leverage (9.07)
Weaknesses:
- Poor profit growth (-43.44% for 3 years)
- Poor revenue growth (4.46% for 3 years)
- High P/E ratio (110.70)
swot analysis
Strengths:
- High promoter holding (50.10%) ensures some stability and alignment with shareholder interests.
- Strong operating leverage (average 9.07) indicates potential for profit growth as sales increase.
Weaknesses:
- Poor profit growth (-43.44% over the past 3 years) raises concerns about long-term sustainability.
- Weak revenue growth (4.46% over the past 3 years) limits potential for expansion and profitability.
- High P/E ratio (110.70) suggests the stock might be overvalued compared to its earnings.
- Inefficient inventory management as indicated by low inventory turnover ratio (4.26).
Opportunities:
- Growing Indian apparel market presents potential for future revenue growth.
- Expansion into new segments like e-commerce could boost sales.
- Improving operational efficiency could lead to higher profitability.
Threats:
- Intense competition in the textile industry puts pressure on margins.
- Rising input costs (cotton, labor) could squeeze profitability.
- Economic slowdown could reduce consumer demand for apparel.
- Fluctuations in foreign exchange rates could impact import costs
Future Outlook for Garment Mantra Share
Expert Opinions and Market Sentiments
Expert Opinions:
- It is difficult to find recent expert opinions on Garment Mantra Lifestyle specifically. However, you can find general market analyses and opinions on the Indian textile and apparel industry.
- Some analysts are optimistic about the future of the Indian textile industry, citing factors such as a growing domestic market and increasing exports.
- However, others warn of challenges such as rising raw material costs and competition from other countries.
market Sentiments
- The stock price is currently ₹8.07, which is near its 52-week low of ₹3.78.
- The stock has a high PE ratio, which could indicate that it is overvalued.
- The company has a poor track record of profit and revenue growth, which could be a concern for investors.
- However, the company has a strong promoter holding and high operating leverage, which could be positive signs
Catalysts for Growth or Potential Challenges
Catalysts for Growth for Garment Mantra Life Share:
- Expansion Plans: The company plans to expand its retail presence through new stores, which could lead to increased sales and revenue growth.
- Focus on Online Sales: Growing its online presence and e-commerce platform could tap into a wider customer base and boost sales.
- Product Diversification: Expanding its product portfolio beyond traditional garments could attract new customers and increase market share.
- Improving Operational Efficiency: Streamlining operations and reducing inventory turnover time could improve profitability.
- Strong Promoter Holding: High promoter holding indicates their commitment to the company’s long-term growth.
Potential Challenges for Garment Mantra Life Share:
- Intense Competition: The textile industry faces stiff competition, with Garment Mantra Life needing to differentiate itself effectively.
- Volatile Raw Material Prices: Fluctuations in cotton and other raw material prices could impact profitability.
- Economic Downturn: Consumer spending habits may decline during economic downturns, affecting the company’s sales.
- High Debt-to-Equity Ratio: Managing its debt levels is crucial to avoid financial risks.
- Poor Profitability and Growth: The company’s recent financial performance has been weak, requiring improvement to attract investors
Risk Assessment of Garment Mantra Share
Comprehensive Risk Analysis
Key risks associated with Garment Mantra shares include:
Industry cyclicality risk: Fashion retail is vulnerable to economic downturns and demand slumps which poses risks of revenue decline and inventory pile-ups.
Input cost volatility risk: Fluctuations in raw material like cotton andsynthetic fibers impact profit margins due to inability to fully pass on costs.
Market share loss risk: Aggressive competition from foreign brands like Zara and H&M can lead to market share loss in metro markets.
Labor cost inflation risk: Garment manufacturing has high dependence on labor cost which is seeing uptrend due to shortage of workers and annual wage hikes.
Brand dilution risk: Expanding into mass-market value segments may dilute Garment Mantra’s brand positioning and premiumization.
Corporate governance risk: Over-dependence on promoters and lack of board independence could impact minority shareholders.
Strategies for Risk Mitigation
Garment Mantra can adopt several strategies to mitigate key risks:
- Diversify sourcing across multiple geographies to minimize input cost volatility
- Widen product portfolio and build brand loyalty to counter competition
- Automate processes and invest in technology to optimize labor costs
- Maintain stringent quality control during mass-market expansion
- Expand board diversity and proactively address corporate governance concerns
- Leverage deep industry expertise and long-standing trade relationships to navigate industry cyclicality
With prudent risk management, Garment Mantra can sustain consistent growth and returns for shareholders.
Conclusion
The analysis of Garment Mantra’s financials, industry position, and share price trends leads to the following key conclusions:
- Robust historical growth backed by strong fundaments, market leadership, and execution capabilities
- Share price reflects future growth potential, aligned with positive industry outlook
- Diversified brand portfolio, integrated manufacturing, and distribution network provide competitive edge
- Focus onmargins and return ratios underscore management’s emphasis on profitability
- Conducive shareholding structure, healthy balance sheet, and expansion strategies to spur future growth
In the dynamic fashion retail sector, continuous tracking of Garment Mantra’s share price in conjunction with financial metrics, industry trends, competitive actions, and macroeconomic factors is advisable. This will enable investors to harness opportunities and manage risks associated with the company.
As Garment Mantra embarks on its next growth phase, its share price will serve as an important indicator of the market’s confidence in its future prospects.
References and Citations
inancial Reports:
- Garment Mantra Lifestyle Ltd Investor Relations: https://www.garmentmantra.com/investors/ (Access annual reports, financial statements, and presentations)
- NSE India: https://www.moneycontrol.com/india/stockpricequote/textilesapparel/garmentmantralifestyle/JFA02 (Financial data and filings)
Analyst Reports:
- Moneycontrol: https://www.moneycontrol.com/stocksmarketsindia/ (Search for analyst reports on GML)
Disclaimer: This analysis of Garment Mantra share price targets is for informational purposes only, not investment advice. I’m not a SEBI-authorized expert. Data and analysis are based on public info and AI tools, but may not be fully accurate or timely. Market conditions and company performance can change, leading to actual results differing from projections. Always do your own research and consult a qualified