Lahore, December 15, 2020 (PPI-OT): Khaadi is a distinct player in the retail fashion industry. With over two decades of history, reflecting growth and expansion, Khaadi has built strong brand equity. It has become synonymous with innovation and quality while ensuring affordability for its target customer base. The basket of the products offered and the topline size and growth supplement this assertion.
The business model of Khaadi, as envisioned by its founder and CEO, has been the self-propelling force for the expansion of the entity. The retail network has reached half a million square foot physical presence. The brand has outreached outside Pakistan as well. Khaadi designs its outlets in a way to give more than shopping experience to walk-in customers.
The management is focusing on further expansion. Potential induction of an equity partner will be of further help. The entity has a strong management structure in place, with professionals leading their respective roles. COVID-19 has impacted the retail sector severely; though revival is underway, it will take some time for a full recovery to take place. The reported number for the recent period reflects dilution. While debt metrics accordingly depict a weak position, they are expected to improve post equity injection and recovery in the business.
The ratings are dependent on the recovery in the business performance and relative position of the entity. The financial profile is also expected to improve as anticipated. Governance of the Company is expected to take positive support from the initiatives undertaken by the sponsor shareholder.
For more information, contact:
Analyst
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425
Email: hammad.rashid@pacra.com
Web: www.pacra.com
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