WEBSITE BSE:544755 NSE: RECODE Inc. Year: 2021 Industry: e-Commerce My Bucket: Add Stock
Last updated: 10:36
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1. Business Overview
Recode Studios Ltd. is an Indian beauty and personal care brand primarily operating through an e-commerce model. The company designs, develops, markets, and sells a range of cosmetic products. Its core business model involves selling its branded beauty products directly to consumers through its online platform, as well as potentially through other e-commerce marketplaces and a limited physical presence (implied by "Studios"). Recode Studios makes money by selling its own branded makeup, skincare, haircare, and other beauty essentials.
2. Key Segments / Revenue Mix
Recode Studios' product portfolio typically includes categories such as:
Makeup (for face, eyes, lips)
Skincare (cleansers, moisturizers, serums)
Haircare products
Beauty tools and accessories
Fragrances
Specific revenue contribution by these product categories is not publicly available.
3. Industry & Positioning
Recode Studios operates within the highly competitive Indian e-commerce beauty and personal care industry. This industry is characterized by the presence of large online aggregators (e.g., Nykaa, Purplle), established offline retailers moving online, international brands, and a growing number of direct-to-consumer (D2C) brands. Recode Studios is positioned as a challenger brand, likely targeting a specific segment of the market with its product offerings, potentially focusing on affordability, specific trends, or ingredient-conscious consumers. It competes with both pure-play online beauty retailers and other D2C beauty brands.
4. Competitive Advantage (Moat)
In the fragmented and competitive beauty e-commerce market, Recode Studios currently has a nascent or limited durable competitive advantage. Potential emerging moats could include:
Brand Recognition: Developing a loyal customer base for its specific product lines or brand ethos.
Cost Efficiency/Pricing: If it can offer compelling products at competitive price points.
Direct-to-Consumer (D2C) Model: Allowing for better control over branding, customer data, and potentially higher margins compared to traditional retail.
However, establishing a strong, wide moat like scale, network effects, or high switching costs is challenging for a relatively newer player in this industry.
5. Growth Drivers
Growing E-commerce Penetration: Continued shift of consumer spending to online channels, especially in tier 2/3 cities.
Rising Disposable Incomes & Urbanization: Increasing consumer spending on discretionary items like beauty and personal care.
Increasing Beauty Consciousness: Growing awareness and demand for a diverse range of beauty products among Indian consumers.
Digital Marketing & Social Media Influence: Ability to reach and engage target audiences effectively through online channels.
Product Expansion: Introduction of new and innovative products catering to evolving consumer preferences and expanding into new categories.
6. Risks
Intense Competition: Facing stiff competition from well-funded incumbents, established global brands, and other emerging D2C players.
Changing Consumer Preferences: Rapidly evolving beauty trends and preferences can make product innovation and inventory management challenging.
High Marketing & Customer Acquisition Costs: Acquiring and retaining customers in a crowded market can be expensive.
Supply Chain & Inventory Management: Risks associated with sourcing raw materials, manufacturing, quality control, and managing inventory effectively.
Brand Dilution/Reputation Risk: Negative product reviews or quality issues can quickly damage brand reputation in the digital age.
Regulatory Changes: Potential changes in regulations pertaining to cosmetic product manufacturing, labeling, and marketing.
7. Management & Ownership
Recode Studios Ltd. is typically a promoter-led company, with the founders driving the strategic vision and day-to-day operations. The ownership structure generally involves the promoters holding a significant stake, with potential for participation from institutional investors or public shareholders following its listing. Detailed profiles of the management team and specific ownership percentages would require access to regulatory filings or company reports.
8. Outlook
Recode Studios operates in the attractive and growing Indian beauty e-commerce market. The bull case hinges on its ability to effectively differentiate its brand, build customer loyalty, and scale its product offerings to capture a meaningful share of the online beauty spending. Leveraging digital marketing and understanding evolving consumer trends will be crucial for sustained growth. The bear case involves the significant challenges posed by intense competition from larger, more established players with deeper pockets and wider distribution networks, potentially leading to high customer acquisition costs and difficulty in achieving profitable scale. Its future trajectory will depend on disciplined execution, effective brand building, and efficient resource allocation in a highly dynamic market.
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Market Cap ₹204 Cr.
Stock P/E 61.9
P/B 3.6
Current Price ₹192
Book Value ₹ 53
Face Value 10
52W High ₹232.9
Dividend Yield 0%
52W Low ₹ 199.5
Price goes above X
Price falls below X
PE goes above X
PE falls below X
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| #(Fig in Cr.) |
|---|
| Net Sales |
| Other Income |
| Total Income |
| Total Expenditure |
| Operating Profit |
| Interest |
| Depreciation |
| Exceptional Income / Expenses |
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| Provision for Tax |
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| Adjusted Earnings Per Share |
| #(Fig in Cr.) | Mar 2023 | Mar 2024 | Mar 2025 | TTM |
|---|---|---|---|---|
| Net Sales | 22 | 37 | 48 | |
| Other Income | 0 | 0 | 0 | |
| Total Income | 22 | 37 | 48 | |
| Total Expenditure | 21 | 35 | 42 | |
| Operating Profit | 2 | 2 | 6 | |
| Interest | 0 | 1 | 1 | |
| Depreciation | 0 | 1 | 1 | |
| Exceptional Income / Expenses | 0 | 0 | 0 | |
| Profit Before Tax | 1 | 0 | 4 | |
| Provision for Tax | 0 | 0 | 1 | |
| Profit After Tax | 1 | 0 | 3 | |
| Adjustments | 0 | 0 | 0 | |
| Profit After Adjustments | 1 | 0 | 3 | |
| Adjusted Earnings Per Share | 0.9 | 0.3 | 4.1 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | 30% | 0% | 0% | 0% |
| Operating Profit CAGR | 200% | 0% | 0% | 0% |
| PAT CAGR | 0% | 0% | 0% | 0% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | NA% | NA% | NA% | NA% |
| ROE Average | 46% | 22% | 22% | 22% |
| ROCE Average | 38% | 21% | 21% | 21% |
| #(Fig in Cr.) | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|
| Shareholder's Funds | 5 | 5 | 9 |
| Minority's Interest | 0 | 0 | 0 |
| Borrowings | 2 | 3 | 2 |
| Other Non-Current Liabilities | 0 | 0 | 0 |
| Total Current Liabilities | 5 | 8 | 12 |
| Total Liabilities | 12 | 17 | 23 |
| Fixed Assets | 1 | 2 | 2 |
| Other Non-Current Assets | 0 | 0 | 0 |
| Total Current Assets | 12 | 14 | 20 |
| Total Assets | 12 | 17 | 23 |
| #(Fig in Cr.) | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|
| Opening Cash & Cash Equivalents | 0 | 0 | 0 |
| Cash Flow from Operating Activities | -5 | -2 | 3 |
| Cash Flow from Investing Activities | -1 | -2 | -1 |
| Cash Flow from Financing Activities | 6 | 3 | -1 |
| Net Cash Inflow / Outflow | 0 | -0 | 1 |
| Closing Cash & Cash Equivalent | 0 | 0 | 1 |
| # | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|
| Earnings Per Share (Rs) | 0.85 | 0.34 | 4.07 |
| CEPS(Rs) | 1.12 | 1 | 4.85 |
| DPS(Rs) | 0 | 0 | 0 |
| Book NAV/Share(Rs) | 6.4 | 6.74 | 10.8 |
| Core EBITDA Margin(%) | 6.51 | 4.49 | 12.28 |
| EBIT Margin(%) | 5.82 | 3.39 | 11.29 |
| Pre Tax Margin(%) | 4.17 | 1 | 8.81 |
| PAT Margin (%) | 3.1 | 0.72 | 6.56 |
| Cash Profit Margin (%) | 4.06 | 2.12 | 7.83 |
| ROA(%) | 5.55 | 1.89 | 16.71 |
| ROE(%) | 13.33 | 5.14 | 46.37 |
| ROCE(%) | 14.5 | 11.62 | 38.34 |
| Receivable days | 54.32 | 44.29 | 50.84 |
| Inventory Days | 91.68 | 58.93 | 57.22 |
| Payable days | 88.85 | 43.2 | 52.78 |
| PER(x) | 0 | 0 | 0 |
| Price/Book(x) | 0 | 0 | 0 |
| Dividend Yield(%) | 0 | 0 | 0 |
| EV/Net Sales(x) | 0.15 | 0.21 | 0.14 |
| EV/Core EBITDA(x) | 2.21 | 4.2 | 1.07 |
| Net Sales Growth(%) | 0 | 64.53 | 29.82 |
| EBIT Growth(%) | 0 | -0.51 | 338.51 |
| PAT Growth(%) | 0 | -60.41 | 1104.12 |
| EPS Growth(%) | 0 | -60.41 | 1104.15 |
| Debt/Equity(x) | 0.73 | 1.43 | 0.86 |
| Current Ratio(x) | 2.14 | 1.73 | 1.75 |
| Quick Ratio(x) | 1.1 | 0.93 | 0.97 |
| Interest Cover(x) | 3.52 | 1.42 | 4.55 |
| Total Debt/Mcap(x) | 0 | 0 | 0 |
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* The pros and cons are machine generated.
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