Superhouse Ltd – Is it a House Full of Super Opportunities?

Reading Time: 5 minutes

Background

Superhouse Ltd is a conglomeration of several companies engaged in manufacturing and export of finished leather, leather products and textile garments.

From a single tannery in the 1980s producing finished leather, Superhouse Group has emerged as one of the largest players in the industry.

Superhouse Ltd - Evolutio | Source - https://superhousegroup.com/history-evolution/
Superhouse Ltd – Evolutio | Source – https://superhousegroup.com/history-evolution/

Superhouse Ltd – Product portfolio

Superhouse Ltd- Product portfolio | Source - https://superhousegroup.com/history-evolution/
Superhouse Ltd- Product portfolio | Source – https://superhousegroup.com/history-evolution/

Superhouse Ltd – Brands

Allen Cooper

The brand has now stepped into the Indian market and is catering to the requirements of corporate and institutional customers, creating a niche image for its fashion leather products adhering to the high standards that the British have set, Allen Cooper’s range of products boasts of an array of international designs through its Italy, UK, China and India based design studios.

Double Duty

Double duty is the only brand in export market under which we produce safety shoes with Direct Injection PU, PU/TPU, Goodyear welted and Direct vulcanizing process meeting to all international safety norms.

Market Share

Industry Structure

  • The Leather industry is bestowed with an affluence of raw materials as India is endowed with 21% of world cattle & buffalo and 11% of world goat & sheep population.
  • Added to this are the strengths of skilled manpower, innovative technology, increasing industry compliance to international environmental standards, and the dedicated support of the allied industries.
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The leather industry is an employment intensive sector.

  • India is the second largest producer of footwear and leather garments in the world.
  • The leather industry is spread in different segments, namely, Finished Leather, Footwear, Footwear Components, Leather Garments and Leather Goods including Bags, Saddlery, Harness and Leather Gloves

Covid Effect

The impact of COVID-19 , the current economic state, fear of recession and challenging market environment, pose new threats to business across all sector.

However, the Superhouse Ltd products are well accepted in overseas and indigenous markets.

Risk and Concerns before Superhouse Ltd

  • The major raw material for the leather industry is raw hide/skins. Leather is a natural product and its prices and availability are changing from time to time..
  • The output of raw hides/skins also depends upon personal skill of the purchasers and technicians, which are being properly taken care-of by the experienced personnel of the company.
  • The adverse foreign exchange rates may affect the profitability of the company.
  • There are certain threats like entry of multinationals in domestic market, International price fluctuation, Stringent Pollution norm like zero liquid discharging policy of the government, fast changing fashion trends and reduction of Government incentive.

Opportunities that Superhouse Ltd has Created

  • The company is having vast experience in sourcing the raw materials for its tanneries and leather products divisions from India and outside which help in keeping the prices and availability under control
  • The substantial revenue of the company is being generated in foreign exchange.
  • The experienced professional of the company are keeping close watch over movement in currency rates.
  • The Government of India had identified the Leather Sector as a Focus Sector in the Indian Foreign Trade Policy in view of its immense potential for export growth prospects and employment generation
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Financials

 Segments Turnover

Superhouse Ltd - Turnover

Profit & Loss

Superhouse Ltd - Financials
https://www.bseindia.com/bseplus/AnnualReport/523283/65608523283.pdf

·        Superhouse Ltd has achieved the sales and other income of Rs 532.40 crores during the year against Rs. 600.30 crores reported last year.

·        The profit before tax was Rs 24.35 crores and profit after tax was Rs 24.30 crores during the year as compared to profit before tax Rs. 29.11 Crores and profit after tax Rs. 19.14 crores reported during the previous year.

Balance Sheet

Consolidated Figures in Rs. Crores

Particular Mar 2017 Mar 2018 Mar 2019 Mar 2020 Sep 2020
Share Capital + 11 11 11 11 11
Reserves 272 289 312 342 353
Borrowings 221 220 209 181 137
Other Liabilities + 151 184 174 146 180
Total Liabilities 656 705 707 679 681
Fixed Assets + 231 224 222 219 214
CWIP 4 6 3 2 1
Investments 12 16 19 25 26
Other Assets + 409 460 463 434 440
Total Assets 656 705 707 679 681
https://www.screener.in/company/SUPERHOUSE/consolidated/#balance-sheet

  • The company is having a Strong & healthy balance sheet and one could easily find Values growing at a steady pace.
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  • The company is having enough Liquidity reserve to cover all its Liabilities.

 

 

 

 

 

 

 

 

Cash Flows

 

https://www.valueresearchonline.com/stocks/183/superhouse-ltd#snapshot

  • Decent recovery can be observed in Optional Level YoY which is good going forward.

  • The company is planning heavy investments in the R&D division to minimize cost which will have impactful top line additions going forward.

Peer Comparison

 

https://www.valueresearchonline.com/stocks/183/superhouse-ltd#peers

 

 

COMPANY MCAP (IN CR.) P/E EPS ROE% ROCE% EV/EBITDA
Relaxo Footwears 18,341.24 89.35 8.26 19.16 24.81 45.91
Mirza International 585.89 50.69 0.96 8.24 12.10 7.42
Liberty Shoes 247.68 -5.56 6.09 10.81 9.70
Superhouse 115.71 6.43 16.31 8.12 8.53 5.10
Lehar Footwears 24.96 -1.18 5.66 9.73 9.71
https://ticker.finology.in/company/SUPERHOUSE

The road ahead for Superhouse Ltd…

  • The company is focusing to expand its geographic presence to new countries and deeper penetration in the existing market through aggressive marketing and distribution.

  • “Superhouse Ltd” objective to remain contextual and contemporary vis-à-vis qualitative products, better value for stakeholders, and value for money to the end consumers both, domestic as well as international.

  • The Company is making efforts to penetrate into the fastest-growing area of the Sports and Kids Shoe market. The company is using an E-commerce platform to expand its marketing activities in the indigenous market.

https://superhousegroup.com/research-development/

Get to know more about Superhouse Ltd here

Cover Image Credits: https://img2.exportersindia.com/product_images/bc-full/dir_110/3278964/childrens-footwear-1874787.jpg

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