Credo Brands (MUFTI)
Fast GrowerFairStock Score: 37/100 — MIXED
Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 1/1
Key Financials
| Current Price | ₹78.2 |
| Market Cap | ₹511.38 Cr |
| P/E Ratio | 10.79 |
| ROCE | 19.07% |
| ROE | 12.22% |
| Dividend Yield | 2.56% |
| Profit Growth | -63.75% |
| Debt/Equity | 0.52 |
| Sales Growth | 3.06% |
| Promoter Holding | 55.01% |
| 52-Week Range | ₹62.5 — ₹115.6 |
| Sector | Retailing |
| Book Value | ₹67.1 |
AI Analysis
AI-generated, general educational analysis — not personal investment advice.
At ₹78.53, Credo Brands looks optically cheap at 12.05 times earnings and 1.37 times book. But a low price-to-earnings ratio is not a margin of safety if earnings themselves are deteriorating. Sales fell 6.04%, and profits plunged 56.24%. The latest quarter tells the same story: ₹146 crore in revenues produced only ₹7 crore in net profit. That is a razor-thin margin for a specialty retailer. The Piotroski F-score of 3 out of 9 reinforces my caution; the business is throwing off weak signals on leverage, efficiency, and profitability. The balance sheet is not alarming — debt to equity is 0.58 and ROCE is 19.07% — but return on equity is just 12.22%, and that will erode further if the profit decline continues. This is a fashion retail business, and fashion retail is inherently cyclical. MUFTI has a brand in the menswear space, but brand equity in clothing is not a permanent moat. Consumer preferences shift, competition is intense, and inventory can become stale quickly. The 3.46% dividend yield is tempting, but dividends are only as reliable as the cash flow behind them. Promoter holding of 55.01% is a positive alignment factor, yet ownership cannot substitute for a healthy operating model. The market cap of ₹567 crore and a 52-week range between ₹63.06 and ₹130.70 tell me this has been a volatile, de-rating stock. Given the FairStock risk score of 26/100 and the current down-cycle, I would not rush. A classic Graham approach demands tangible evidence of stability, not just a cheap multiple. I need to see sales stabilise, margins recover, and working capital stay under control before I can call this an intelligent bargain. This is a cyclical, not a stalwart.
The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer