Credo Brands Marketing Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Credo Brands Marketing Ltd trades at ₹72.8, in a downtrend and 57 weeks into that stage. That is −19.5% against its own 200-day average. It sits at 9% of a 52-week range of ₹69 to ₹115. On relative strength it is currently behind the NIFTY 500 on a trailing-13-week view (9 weeks and counting).

Today the stock is in a downtrend — week 57 of stage 4, confirmed. At ₹72.8 it trades −19.5% versus its 200-day average and sits at 9% of its 52-week range (₹69–₹115).

Against the market, two honest reads. Cumulative: over the last 2.7 years the stock moved −75% while the NIFTY 500 moved +18% — behind the index over the full window. Recent form: on a trailing-13-week view the stock is currently behind (9 weeks and counting; last ahead the week of 2026-07-10) — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Credo Brands Marketing Ltd trades at 10.7× P/E, mid-range by its own standards (49th percentile). Its long-run median P/E is 10.8×, measured across 2.7 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 10.7× is mid-range by its own standards (49th percentile), against a long-run median of 10.8× measured over 2.7 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved −30.8% against a −37.7% price move — earnings outran the price, pushing the multiple DOWN its own range.

Put together: the multiple is unremarkable against its own past, so the story rests on the earnings line underneath it, not the multiple.

What the price assumes This reading works the multiple backwards. It asks one question: what yearly rate of profit growth is a buyer at the market price already paying for? The number is the growth rate that makes eleven years of profit — six years growing, then five fading — add up to that day's market price, once each year is discounted at 11% a year.

Solved at its 13 June 2026 price, Credo Brands Marketing Ltd was paying for profit growth of about 2.7% a year. Profit itself has compounded 15.6% a year over the past 7 years. Today the market pays 10.7× P/E, the 49th percentile of its own 3-year range.

What the two numbers say together. The multiple is unremarkable against its own past, and the growth the price is paying for is below what this company has actually delivered.

How to hold this number: it is a reading of one day's price, taken on 13 June 2026, not a running figure — every other number on this page, the multiple included, is read off the live quote as of 11 September 2026. A higher price is paying for more growth and a lower price for less, so it moves whenever the price does, and this page does not restate it between measurements.

Stage: Deteriorating Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Credo Brands Marketing Ltd reads as deteriorating on its fundamental arc. Deteriorating — revenue, profit and EPS growth are shrinking (revenue growth −2.7% latest against +9.2% at its 12-quarter best), ROCE slipping at 14.0%. The read is built from 9 quarters across 4 curves, on partial evidence.

🚨 Why it matters: falling curves mean every cheap-looking ratio below needs a discount for direction.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

A partial read: at least one curve is short, or the returns curve is not the computed quarterly series — hold the stage word a little more loosely.

4-Factor Sector Score

36.4/100 — rank 20 of 26 in Textiles - Readymade Apparel · 87% evidence confidence

Credo Brands Marketing Ltd scores 36.4 out of 100 against the 26 companies it is compared with in Textiles - Readymade Apparel, ranking 20. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 5.3 + 15.5 + 12.1 + 3.5 = 36.4. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Credo Brands Marketing Ltd reported ₹125 Cr of revenue in the Jun 26 quarter, +4.4% year on year. That is the 2nd straight quarter of year-on-year growth. Over 7 years it has compounded at 6.0% a year. The last full year, FY26, came in at ₹592 Cr. The last four reported quarters add to ₹597 Cr.

FY26 revenue came in at ₹592 Cr (−4.2% on the year), capping 7 years at 6.0% compound. The latest quarter (Jun 26) printed ₹125 Cr, +4.4% year on year — the 2nd consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged −1.9% growth against the decade's 6.0% — the current year is running slower than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew −2.7% over the last 4 quarters against +2.1%/yr over the last 8 — rolling over; TTM profit −33.2% vs −15.2%/yr — rolling over.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Credo Brands Marketing Ltd's operating margin is 21.2% in the Jun 26 quarter, −4.7 percentage points against the same quarter a year ago. Across 8 fiscal years the operating margin has ranged 9.0% to 33.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 21.2%, −4.7 pp against the same quarter a year ago. Across 8 fiscal years the operating margin has ranged 9.0%–33.0%.

🚨 Why the margin moved: operating margin went −4.7 pp year on year while gross margin went +0.1 pp — the loss came mostly below the gross line: operating leverage, with costs spread over a bigger revenue base.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Credo Brands Marketing Ltd earned ₹2.3 Cr of net profit in the Jun 26 quarter, −63.7% year on year. Full-year FY26 profit was ₹47.0 Cr. The 7-year compound rate is 15.6%. That is 1.8% of the quarter's revenue. The same quarter a year earlier earned ₹6.3 Cr.

Jun 26 profit was ₹2.3 Cr, −63.7% year on year. On the full year, FY26 printed ₹47.0 Cr (−30.9%), and the 7-year compound rate is 15.6%.

🚨 Why profit moved: revenue contributed +4.4% and the margin −4.7 pp — the quarter was revenue-led despite a thinner margin.

Pace comparison, last four quarters: profit −36.0% vs revenue −1.9%. Profit is growing slower than sales — costs are eating the growth before it reaches the bottom line.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 199% of Credo Brands Marketing Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹132 Cr of operating cash against ₹47.0 Cr of profit. After ₹59.0 Cr of capital spending, ₹73.0 Cr was left as free cash.

FY26: operating cash of ₹132 Cr against reported profit of ₹47.0 Cr, leaving free cash of ₹73.0 Cr after ₹59.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 199% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 199%: the cash cycle stretched 45 days between FY21 and FY26 — more of each rupee of profit waits inside the cycle before arriving.

Router verdict: no single sink dominates — the next section checks both the working-capital cycle and the capital spending.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Credo Brands Marketing Ltd's cash conversion cycle runs 269 days in FY26, up from 224 days in FY21. Capital spending ran ₹245 Cr over the last 3 years. At FY26 sales of ₹592 Cr each day of that cycle holds about ₹1.6 Cr, so roughly ₹436 Cr sits inside the business at any moment.

FY26: debtors at 146 days, inventory at 163 days — roughly 5.4 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 269 days, looser than FY21's 224.

The full loop: cash goes out to suppliers and production on day 0; stock waits 163 days to sell; customers pay about 146 days after that; and suppliers themselves are paid at 40 days — netting out to the 269-day cycle.

In money terms: at FY26 sales of ₹592 Cr, each day of the cycle holds about ₹1.6 Cr — so the 269-day loop keeps roughly ₹436 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹245 Cr over the last 3 fiscal years against ₹205 Cr of depreciation — building somewhat ahead of wear-and-tear. Capital work-in-progress stands at ₹1.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: neither the cycle nor the build-out is hoarding the cash — the machine is reasonably clean.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Credo Brands Marketing Ltd earns a ROCE of 14% in FY26. That is up from a trough of 8% in FY21. Return on invested capital clears the cost of that capital by −2.3 percentage points, so growth here is not yet paying for the capital it uses. The wiring behind it is 7.9% net margin on 0.74× asset turns.

FY26 ROCE is 14%, recovered from a FY21 trough of 8% — the full ladder below shows the fall and the climb, undoctored.

🚨 Why the return is what it is — the wiring (FY26): 7.9% net margin × 0.74× asset turns × 1.83× balance-sheet leverage ≈ 10.7% on equity. Margin does its share; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: 9.7% − 12.0% = a −2.3 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Negative — growth at these returns destroys value until the returns recover.

Debt Debt-to-equity says how much of the business is funded by borrowings; interest cover says how many times operating profit pays the interest bill. Low and high, respectively, is the safe corner.

Credo Brands Marketing Ltd carries ₹228 Cr of borrowings against ₹439 Cr of equity in FY26, a debt-to-equity of 0.52. Operating profit covers the interest bill 6×. Over 5 years borrowings went from ₹15.0 Cr to ₹228 Cr. Capital spending ran ₹245 Cr across the last 3 of those years.

FY26: borrowings of ₹228 Cr against equity of ₹439 Cr — a debt-to-equity of 0.52. Operating profit covers the interest bill 6×. Over 5 years borrowings went from ₹15.0 Cr to ₹228 Cr while capital spending ran ₹245 Cr in just the last 3 — part of the build-out is riding on borrowed money.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Domestic institutions cut 4.6 points of Credo Brands Marketing Ltd over 8 quarters, the biggest move on the register. That takes domestic institutions to 3.0% of the company. Foreign institutions moved −1.4 points over the same window, to 0.5%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Domestic institutions: −4.6 points over 8 quarters to 3.0%; Foreign institutions: −1.4 points over 8 quarters to 0.5%; Promoters: −0.2 points over 8 quarters to 55.0%.

🚨 Why the register moved: domestic institutions drove it (−4.6 points), alongside foreign institutions (−1.4 points) — distribution into the market’s bid.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Credo Brands Marketing Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

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