Risk factor
Very poor trading liquidity
Profitability factor
Very low or no dividends
About
Founded in New Delhi, India, in 1979, Archies Limited (which operated as Archies Greetings and Gifts Limited until November 2002) is a retail enterprise specializing in cultural, recreational, and sundry merchandise. The company markets its diverse range of products under the "Archies" brand, featuring items such as flowers, cakes, chocolates, greeting cards, soft toys, stationery, gift hampers, jewelry, home decor elements, mugs, sippers, cosmetics, and various accessories. Its extensive distribution network throughout India comprises company-owned stores, franchised outlets, distributors, independent retailers, and an online presence. As of March 31, 2021, Archies Limited maintained 152 owned and operated retail locations. Beyond domestic sales, the company also exports its goods to international markets including Sri Lanka, Bangladesh, Mauritius, Uganda, Rwanda, Kenya, the United States, Australia, Egypt, Kuwait, the United Arab Emirates, Oman, Thailand, and Italy.
Company Valuation
Based on key historical and expected multiples, the stock is overvalued relative to its peers. In particular, the stock is 'expensive' on EV/EBITDA, overvalued on P/FC.