Textiles / Apparel Manufacturing

Celebrity Fashions Ltd

₹00.407

CELEBRITY

Company Overview

Celebrity Fashions Limited, incorporated in 1988 and based in Chennai, India, is engaged in the designing, manufacturing, and selling of garments both domestically and internationally. The company primarily caters to the demand of international brands, operating as an India-based entity focused on the textile and apparel manufacturing sector. Celebrity Fashions Limited has identified Geographical Segment as its secondary segment, comprising Domestic sales and International sales.

The company operates through its registered office located at SDF IV & C2 Third Main Road, MEPZ SEZ Tambaram, Chennai, Tamil Nadu-600045. As a key player in export-oriented manufacturing, Celebrity Fashions has established itself as a reliable supplier to various multinational brands.

Business Operations and Services

The Company also operates its own national premier menswear brand. Studio Celebrity serves as the company's design studio, offering clients comprehensive design support. This support includes services such as CADD (Computer-Aided Design and Drafting) for plaids and prints, trend analysis, and lifestyle presentation. Through Studio Celebrity, the company provides end-to-end solutions from concept development to finished product, effectively supporting international brands with their design and development needs.

Established in 1988, Celebrity Fashions Ltd manufactures and exports all types of textile garments and clothing accessories to numerous multinational brands. Its design studio, Studio Celebrity, offers support in areas including:

- CADD for plaids & prints

- Trend analysis

- Lifestyle presentation

Stock Market Performance

Celebrity Fashions Ltd has a market capitalization of ₹64 Cr as of 04-Mar-2025. The stock trades on both the NSE and BSE under the symbol CELEBRITY. Over the past 52 weeks, the stock has recorded a low of ₹8.36 and a high of ₹20.50. In terms of performance, Celebrity Fashions share price has declined by 1.3% over the past six months and has seen a decline of 16.98% over the last year.

Classified as a Small Cap company by Value Research, the stock exhibits volatility typical of its segment, with significant price movements reflecting the dynamic challenges within the textile and apparel industry.

Financial Performance

The company has experienced financial challenges in recent reporting periods. The trailing twelve months (TTM) profit after tax for Celebrity Fashions Ltd was ₹-17 Cr. Audited FY25 results indicate a loss of Rs.18.26 Cr, with revenue impacted by the exit of a major customer. The company has also re-appointed its internal auditor.

Key financial metrics as of recent reporting periods include:

- Revenue: ₹165 Cr

- Profit: ₹-18.3 Cr

- P/B Ratio: 3.60 times (as on 04-Mar-2025), which is a 6% premium to its peers' median range of 3.41 times.

- P/E Ratio: Not available, as TTM earnings are negative.

Key Challenges and Risk Factors

The company faces several operational and financial hurdles. Celebrity Fashions Ltd has demonstrated a poor sales growth rate of -6.60% over the past five years. Furthermore, it has recorded a low return on equity of -13.1% over the last three years.

Additional concerns include contingent liabilities amounting to ₹56.5 Cr. Promoters have pledged or encumbered 77.6% of their shareholding. The company's debtor days have also increased significantly, from 69.8 to 117 days.

Promoter Holding stands at 35.3%, which is considered relatively low for an Indian company. Promoter holding has also decreased over the last three years by -3.34%.

Management and Corporate Structure

The key management personnel include V Rajagopal as Chairman and A Rishi Kumar as the Company Secretary. Celebrity Fashions Ltd upholds corporate governance standards and provides dedicated channels for investor services and stakeholder communication.

Historical Milestones

On January 12, 2006, the equity shares of Celebrity Fashions Ltd were listed on the National Stock Exchange of India Ltd (NSE) and the Bombay Stock Exchange Ltd (BSE). Over the years, the company has undergone various operational adjustments, including plant relocations and capacity optimization initiatives aimed at enhancing operational efficiency.

Celebrity Fashions Ltd continues to navigate the challenging environment of the textile industry, working towards restoring profitability and strengthening its market position in the garment manufacturing and export sector.