What Is the Expansion?
Recode Studios has inaugurated its first Modern Trade retail point at The Opulent Mall in Ghaziabad, marking a pivotal shift in its distribution strategy. This facility is part of a broader collaboration with NewU, the beauty and personal care retail chain operated by H&B Stores Limited, a wholly owned subsidiary of Dabur India Limited. The company has outlined an aggressive roadmap to establish approximately 15 to 20 additional NewU stores over the coming 12 months.
This expansion is designed to target high-potential urban markets, providing the brand with premium physical touchpoints to complement its existing digital and omnichannel sales channels.
Strategic Rationale
- Leveraging the established retail infrastructure of Dabur India's NewU ecosystem to achieve rapid scale
- Enhancing brand visibility through high-traffic Modern Trade channels that attract premium shoppers
- Focusing on high-potential markets to drive higher average order values and customer loyalty
- Transitioning toward a more diverse luxury product portfolio to improve overall profit margins
- Scaling the physical retail network while maintaining an asset-light business model through third-party retail partnerships
Management Perspective
The opening of our first NewU store at The Opulent Mall, Ghaziabad marks an important milestone in our retail journey. Our association with NewU and the Dabur ecosystem provides us with an opportunity to participate in the rapidly evolving organised beauty and personal care retail market.
Business Overview
Recode Studios Limited is an Indian beauty and personal care brand managing a portfolio of over 350 Stock Keeping Units (SKUs) across cosmetics and skincare. The company follows an asset-light operational model, concentrating its resources on product innovation, branding, and marketing while utilizing third-party manufacturing. Currently, Recode serves customers through a mix of retail networks, e-commerce platforms, and distribution channels.
The brand positions itself in the affordable premium segment, aiming to capitalize on the increasing consumer spending in the organized Indian beauty market through both online and physical expansion.
Financial Context
The company shows robust financial health, with annual revenue reaching ₹79.95 crore, representing a 67% year-on-year increase. Profitability has scaled significantly, with net profits rising by 239.44% to ₹11.21 crore. Recode Studios maintains high efficiency ratios, including a Return on Equity (ROE) of 56.05% and a Return on Assets (ROA) of 31.6%.
Market sentiment remains positive as the stock recently hit a high of ₹255, supported by a Piotroski Score of 6. The promoter group retains a 65.02% stake, while institutional holdings currently stand at 15.67%.
