Pantaloons Market Share

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Topic: Pantaloon Retail - Targetting 100% growth y-o-y.


Joined:     Posted: 10/Aug/2006 at 3:40pm
01/Jan/2006
Location: Pantaloon Retail – Relying on growth
India
Online
 
Status: I had written about Pantaloon Retail on this forum under the topic  The Multibagger
Offline Portfolio when it was at Rs 1125. Personally I continue to hold the stock for the past 3
Posts: 16236
years when it used to quote at Rs 50.. The company recently came out with its sales
number for July 2006 and the growth seems to continue unabated. The company hopes
to grow its total area by 10 times to 30 million square feet by 2010 from the current 3.5
million square feet. Sales are also expected to grow on the same line.
 
Pantaloon Retail has maintained its aggressive growth stance for the month
of July 2006.
 
Particulars July 06 July 06 YoY
Value Retailing 140.62 84.92 65.58
Lifestyle Retaling 64.55 45.10 43.11
TOTAL 205.17 130.02 57.80
Same store sales      
Value Retailing 105.62 84.64 24.78
Lifestyle Retaling 58.98 45.10 30.79
       
 
 
Market Capitalization Rs 3718 crores
Revenues FY 07 (E) Rs 4000 crores
EPS 2007 (E) Rs 55
Revenues FY 08 (E) Rs 8000 crores
EPS 2008 (E) Rs 100
 
Recommendation: Pantaloon Retail remains a high risk high return stocks. Price wise if
sales and profits grow multifold the stock price has to follow. While the stock might look
cheap the RoE at 25% implies that the company is managing its capital well. The
company’s foray into restaurants, Insurance, real estates spas, etc should help it
continue with its growth unabated. In September the company is setting up 5 Big
bazaars, 11 Food Bazaars and 8 Home store format stores.

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