Lovable Lingerie has soared over 17% to Rs 327 in noon deals on back of heavy volumes on the bourses.
The stock opened at Rs 280 and hit a high of Rs 331 so far on the National Stock Exchange. A combined around 1.04 million shares, representing 19% of free-float of equity of the company, have already changed hands on the counter till 1250 hours. A combined an average sub 25,000 shares were traded daily in past two weeks on NSE and BSE.
The stock has underperformed the market by falling 22% so far in current calendar year till yesterday compared to 4% rise in benchmark index due to slow down in revenue growth.
Meanwhile, the management is optimistic about a revival in the operating margin on the back of price hikes and lower ad spends. The company is also considering entering the men’s segment through acquisition of an existing brand.
The management expects operating margins to return to the levels of FY12 as they plan to lower advertising spends by 3-4%. Lovable is also planning a price hike in Q3FY14, which will take care of rising overheads, says analyst at ICICI Securities in management meet note dated August 20, 2013.
The stock opened at Rs 280 and hit a high of Rs 331 so far on the National Stock Exchange. A combined around 1.04 million shares, representing 19% of free-float of equity of the company, have already changed hands on the counter till 1250 hours. A combined an average sub 25,000 shares were traded daily in past two weeks on NSE and BSE.
The stock has underperformed the market by falling 22% so far in current calendar year till yesterday compared to 4% rise in benchmark index due to slow down in revenue growth.
Meanwhile, the management is optimistic about a revival in the operating margin on the back of price hikes and lower ad spends. The company is also considering entering the men’s segment through acquisition of an existing brand.
The management expects operating margins to return to the levels of FY12 as they plan to lower advertising spends by 3-4%. Lovable is also planning a price hike in Q3FY14, which will take care of rising overheads, says analyst at ICICI Securities in management meet note dated August 20, 2013.
