In a market where every Johnny-come-lately is being valued at a few hundred crores, Cravatex's investment proposition is compelling. Uptil recently, an investor in Cravatex could buy the entire business of Fila India (and Proline Fitness Equipment) for just around a 100 crore. Profiled here and here.
Cravatex acquired the rights to distribute Fila only recently, and their distribution / marketing of Fila in India is yet to really kick in. As a comparison, even Relaxo Chappals are valued at 2.5 times Cravatex!
The key unknown is the quality of management - there is no reason to discredit them, they have done a good job with building Proline as a private business, but the question of whether they are kosher when it comes to creating shareholder value is still open.
The stock is up 50% in the last month - however, time will tell if the shoe fits for the long run.