I have hidden gem for you to invest next 1 year

When I was graduating from the IIT, I have taken finance as my minor degree subject. I started learning about market and first thing I learnt in 2017 is " Nifty is just index, not whole market" My first investment was ramkrishna forging as I am mechanical engineer found this company better. After so much of experience inkny last 6 years I made good money. I am sharing here my research on one stock called credo brands. We already know they sell mufti name brand clothes. Brand is very much smaller and operate in very niche category. Why you should look this company as investment is growth + valuation Current market cap of the company is 1100 crore cra Last 3year profit are 36(2022) , 76(2023), 59(2024), This is profits till. Now of two quarters 36 crore. If you look valuation wise its PE comes around 18.5 taking last as base year If company makest next two quarters of 30 cr of the profits then total profit for this year will be 66 crore and PE will come around 16.6 I think PE for fashion brand in current market are around 25-50. Even if we take conservative 20 as PE multiple for this year then there is gap of 25% in the valuation. W Now let's talk about the growth of the company This year festival season for the brands has been leeser than last year still credo managed to get 12% revenue growth last quarter They added 17 new stores in first two quarters and closed 15 non profitable stores. Net they has 2 new stores and almost most of them profitable. Company is looking to add 20-25 stores in next half of the year. They are guilded 10-12 revenue growth and ebita margins of 28-30%. If take this as base it can easily cross 66 crore profits this year. mostly their expansion is on Exclusive brand store opening rather than selling online. Brand store makes good margins than online because in online sales commission to flipcart, mintra are high that's causes them have lower margins. I Currently they are having 417 stores and if let's say they add 15 new stores next year then growth wil be around 6-7% in volume and second growth will be from prices increase. As we know every year prices of things goes up. Let's say they make 12% revenue growth and 28-30% margins stable then easily then can beat 13-15% profits growth. The company whose profits are growing 15% and its in retail then market could give them 20-25 PE in future. Looking attractive valuation if stoke comes below to 1000crore add more. I am waiting with cash to buy this stock if it's comes below 1000 crores Upvote to find people this post Comment to add things more Follow me for more such stories