RATING

RECOMMENDATION

Strong Buy

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RATING

RECOMMENDATION

Strong Buy

Business Type

Startup - Growth Phase

RATING

RECOMMENDATION

Strong Buy

Business Type

Startup - Growth Phase

  • Madbow Growth

Get detailed information about the Madbow Share Price. In this research report, you will get to know about Madbow Peer Comparison data. In addition, get the Complete details about the Net Profit Growth, Revenue Growth and Book Value Growth.

Madbow Revenue Growth

Growth in %

  • 18.97%

    1 Year

  • 51.98%

    2 Year

  • 155.14%

    3 Year

The increase in an average order value (AOV) of the company from Rs.1,010 in FY20 to Rs.1,090 in FY21 which has been a result of increase in the number of units from 4 Lac in FY20 to 5.5 Lac in FY21 in all categories as well as new consumer divisions like ethnic and lingerie increased the number of items bought by consumers per order that led to rise the overall revenue of the company in FY21.

Madbow Net Profit Growth(PAT)

Growth in %

  • 76.46%

    1 Year

  • 166.35%

    2 Year

  • 105.53%

    3 Year

The company's PAT turned positive during the year due to growth in revenue and prudent cost management. The company's GMV grew by 35.2% over the previous year – the total of which is Rs.32 Cr in FY21. It must be noted that this was the pandemic year. The agility of the company to both manage lockdown restrictions as well as bringing in new and relevant stock keeping unit (SKU)s played a significant role in this growth. The company offered approximately 5000 SKUs from 87 brands to its consumers across business verticals which created a better inventory management. 

Madbow EPS Growth

Growth in %

  • -81.24%

    1 Year

  • -13.17%

    2 Year

  • -2.62%

    3 Year

During FY21, the paid-up share capital of the company was increased from Rs.5 Lac consisting of 50,000 equity shares of Rs.10/- to 47 Lac consisting of 4,70,000 equity share of Rs.10/- each which shows that company is progressing with more equity flowing in the company than the increase in the profits of the company in FY21 leading to decline in the EPS growth of the company.

  • Madbow Book Value Growth

Growth in %

  • 232.57%

    1 Year

  • 145.34%

    2 Year

  • 143.02%

    3 Year

Book value per share of the company has decreased significantly as company is trying to finance their operations using increased paid up capital in their books, leading to increase in the equity by 3.8x with 9x increase in the number of shares from the previous year resulting in the fall of the book value per share.

Madbow EBITDA Growth

Growth in %

  • 147.44%

    1 Year

  • 209.70%

    2 Year

  • 178.45%

    3 Year

EBITDA has increased by 2.4x from FY20 due to company's ability of using its inventory effectively. Revenue, on the other hand grew by 19% and due to economies of scale the operating expenses reduced by 7%.

Madbow Operating Profit Growth

Growth in %

  • 160.69%

    1 Year

  • 237.46%

    2 Year

  • 167.82%

    3 Year

Operating profit of the company has increased significantly due to rise in an AOV of the company that increased from Rs.1,010 in FY20 to Rs.1,090 in FY21 resulting into an increase in profit margins of the company. With the lower expense cost per unit of revenue than previous year due to increase in assortment on the platform and change in the consumer behavior (due to COVID-19) lead to higher basket sizes of orders. Depreciation & amortization expenses have increased with the increase in assets of the company but the same is expected to yield higher returns in future. 

Madbow Asset Growth

Growth in %

  • 76.02%

    1 Year

  • 90.11%

    2 Year

  • 132.53%

    3 Year

The company has increased the assets by spending more on the softwares to create a robust system for their operations in place. In FY21 an increase in the subsequent operations of the company increased the tangible assets by 3.3x from previous year to create a strong asset base for future operations.

Madbow Cash Flow from Operations

Growth in %

  • NA

    1 Year

  • NA

    2 Year

As the company is in its initial stage, the company needs to take short term working capital limit to meet its daily operation which reduced the company's cash flow from operations in FY21. It must be noted that CFO has improved from previous year due to increase in the net income of the company as well as the rise in non cash expense that increased the cash flow from operations before the changes in the working capital.

  • Madbow Solvency Ratios

Madbow D/E Ratio

Debt/equity ratio is high as company finance the investments via borrowing. The company has also put in steps to increase the equity of their company which grew by 3.8x in FY21 from FY20 which gives them the better edge to reap the benefits of financial leverage if the debt is efficiently managed.

Madbow Current Ratio

Current ratio of the company is higher than 1 but less than 2 which makes it neutral to say that the company's ability to pay off its current liability using its current assets is good. Though, there has been an increase in the current liability of the company because of current maturities of long term debt and the short term borrowing to meet its operational needs in FY21 which caused the fall in current ratio from FY20. With the rise in the total assets of the company we can expect the current ratio to go up in future as this will strengthen the asset base of the company to meet the requirements for its operations.

Madbow Quick Ratio

The major reason for the quick ratio less than 1 is because the business is inventory led e-tailing business which heavily rely upon the inventory and its efficiencies and if taken out of equation the quick ratio will be poor. The company can improve on the part of keeping their payable low which has been the one of the reasons for quick ratio less than 1.

Madbow Interest Coverage Ratio

Company had taken an unsecured OD facility from the HDFC to meet the urgent requirement for its business, which has higher interest rate compared to the secured borrowing which increased the interest expense of the company in FY21 leading to poor interest coverage ratio than before. Though it is greater than 1 which shows that company's can manage to pay off its interest expenses with their net income.

  • Madbow Operating Efficiency

Madbow Operating Profit EBIT Margin(OPM)

The company has fairly performed when it is comes to EBIT margin as the company has been making its footprint using the retail technology which gave them the edge on fairly evaluating their resources and to optimise on their operations costs and revenue with the systematic solution to e-commerce in place.

Madbow Profit Before Tax Margin (PBT Margin)

Profit before tax has increased from FY20 by 2.3x with 2.6x increase in the EBIT against 1.1x increase in the total expense which clearly indicates the company is expanding and continuously invest to develop their technology for improvement in operational efficiency. In FY21 retail tech has helped them scale and diversify into multiple channel and enable them to grow with 100% rate year on year.

Madbow Profit After Tax Margin (PAT Margin)

Profit after tax margin has improved from FY21 by 38 basis points which is a good indicator but the EBIT grew by only 1.3x and the profit after tax increased by 71% which indicates that company has better opportunity of improving their net profits in the future if they could efficiently control their tax expenses as total tax amount rose by 4.1x from previous year.

  • Madbow Profitablity Ratio

Madbow Return on Equity(RoE)

Company has been fairly doing well with the return on equity. It must be noted that the company has infused equity in the form of paid up capital to further expand themselves which somehow impacted the ROE of the company. Total Equity of the company grew by 2.9x over the net income growth of 76% leading to lower ROE. The company is expected to get higher return in future with the infused equity in place.

Madbow Return on Capital Employed(RoCE)

Return on capital employed is adequate as the company has been able to mobilise its capital employed into lucrative sales growth of the company, with technological investment and systematic solution E-commerce in place, we can expect return on capital employed to further increase in the future with economies of scale and better asset management.

Madbow Return to Assets (RoA)

Company has increased its non current assets 3.3x in FY21 against the increase in current assets by 1.6x which indicated the that the large part of increase in assets has been explained by non current assets which will strengthen the company's ability to give higher return on assets which will improve quality control and efficient scale of production. Asset turnover ratio in FY20 has been higher than FY21 because company has entered into launch phase to growth phase in FY20 leading to higher profitability in FY20 than FY21.

  • Madbow Valuation Ratios

Madbow Earning Yield