Brics PCG: 'Buy' Crew BOS

BRICS PCG recommends to 'Buy' Crew BOS at Rs 162 with a target price of Rs 250. The stock trades at a P/E of 7.3x and 6.1x on FY07E and FY08E earnings respectively.

The export of leather and leather-related products increased 7.98%  during FY06 to $2,695mn, mainly owing to a spurt in demand for leather footwear. The Leather Export Council expects this segment to contribute 40% of total exports, going forward.

Crew BOS is well positioned to take advantage of the growing demand
since it has recently increased its ladies footwear, watch strap and belt capacities.

It plans to raise funds from international and domestic markets for further expansion and diversification projects. The company has also been allotted 30 acres of land at Neemrana, Rajasthan which would be utilised for the expansion of capacities for fashion accessories and its footwear business.

It is also exploring options to enter the Indian retail market.