Credo Brands Marketing Ltd. was incorporated as a private limited company named Credo Brands Marketing Private Limited in Mumbai, India, on April 29, 1999. Subsequently, the company was converted from a private limited company to a public limited company on May 11, 2023, with a fresh certificate of incorporation issued by the RoC, and its name was changed to Credo Brands Marketing Limited. Credo Brands is among the largest homegrown brands in the mid-premium and premium men's casual wear market. The company is primarily engaged in the business of selling fashion casual garments and accessories under the brand name Mufti.
Credo Brands Marketing (Mufti) is a prominent player in men's casual wear in India, offering a range of products from shirts and t-shirts to jeans and chinos. Their products are designed to provide a youthful appearance while keeping up with ongoing fashion trends. Credo Brands Marketing Limited retails men's casual wear under the MUFTI brand name in India. The company offers topwear, bottomwear, and outerwear products, such as shirts, t-shirts, trousers, sweatshirts, jeans, cargos, chinos, jackets, blazers, sweaters, party wear, and athleisure products, covering authentic, relaxed, and urban casual styles.
The company operates with an asset-light business model, wherein its entire manufacturing is outsourced to job workers and third-party suppliers. As of March 31, 2023, the Company had a network of 45 fabric and accessories suppliers and over 45 manufacturing partners, with a focus on the top five suppliers. This strategic approach allows the company to maintain operational flexibility while concentrating on design, brand building, and market expansion.
The company sells its products through multi-brand outlets, exclusive brand outlets (EBOs), large format stores, and online channels, including its website and e-commerce marketplaces. Mufti added 16 new Exclusive Brand Outlets (EBOs) on a net basis in FY25, bringing the total store count to 441 as of March 31, 2025. This expansion reinforces the brand's focus on strengthening its offline presence, with EBOs accounting for a solid 55% of total sales during the year.
The market capitalization of Credo Brands Marketing Ltd (MUFTI) was ₹1,135.36 Cr as of May 26, 2025. The P/E (price-to-earnings) ratio is 16.60, and the P/B (price-to-book) ratio is 3.32. The current dividend yield is 1.70%.
Key Financial Metrics:
- Q4 FY25 Revenue: ₹153.21 Cr
- Q4 FY25 Net Profit: ₹13.83 Cr
- FY25 Annual Revenue: ₹618.18 Cr
- FY25 Annual Net Profit: ₹68.37 Cr
- 52-week High: ₹228
- 52-week Low: ₹117
The company demonstrated remarkable financial resilience in Q4 FY25. Credo Brands Marketing (Mufti) saw its consolidated net profit rise by 96% to ₹13.8 crore, while net sales increased by 15% to ₹153.2 crore in Q4 FY25 compared to Q4 FY24. For the full year FY25, net profit grew by 15% to ₹68.4 crore, and net sales increased by 9% to ₹618.2 crore compared to FY24.
While EBOs led the pack, Multi-Brand Outlets (MBOs) contributed 25% of sales, followed by Online sales at 11%. Large Format Stores (LFS) and other channels accounted for 4% each, underscoring a well-diversified retail presence. This strategy ensures broad market reach across different customer segments and shopping preferences.
The Company's store expansion trajectory is notable: it opened its 100th store in 2010, its 200th store in 2013, its 300th store in 2019, and reached 350 stores by 2022. This steady growth reflects the brand's systematic approach and market acceptance.
In terms of products, the focus remained on core categories. Shirts and bottomwear were equally dominant, each comprising 40% of the product mix. T-shirts accounted for 11%, while outerwear and other items contributed 6% and 3%, respectively. This product mix strategy enables the company to address the core wardrobe needs of its target demographic while maintaining strong margins.
Key competitors in similar price brackets include brands such as Jack & Jones, Levi's, Pepe Jeans, and U.S. Polo Assn. The company has carved out a distinct position in the competitive mid-premium to premium casual wear segment through its youthful brand positioning and trendy designs.
Effective inventory management strategies, including a multichannel approach for liquidation, contributed to improved operational efficiency, as evidenced by a reduction in inventory days. Operationally, Mufti maintained working capital discipline with 184 working capital days at the close of the fiscal year. This discipline demonstrates the company's ability to manage working capital efficiently while supporting growth initiatives.
The management remains optimistic about future growth, targeting mid-teens revenue increases through strategic store expansions and enhanced digital engagement, while maintaining a strong focus on profitability. With a solid cash flow position and a commitment to shareholder returns, the company is well-positioned to adapt to evolving consumer preferences and capitalize on emerging market opportunities.
Despite facing challenges in the premium apparel market, the company demonstrated resilience in the current quarter with a 4% revenue growth, even while navigating headwinds from reduced consumer spending. This ability to maintain growth momentum reflects its robust business model and strategic execution capabilities.
