Dear All,
Forwarding you the Result Update on Pantaloon Retail for 3QFY2011 with a Buy recommendation and a Target Price of `332 (12 months).
Pantaloon Retail (PRIL) reported poor performance for 3QFY2011. The company reported top-line growth of 17.6% yoy to `2,812cr. Value retailing recorded same-store-sales of 10.3% during the quarter, while lifestyle retailing stood at 10.2%. During the quarter, EBITDA margin declined by 30bp to 8.8% (9.1%). PRIL's presence across price points and categories places it in a better position than its peers. We maintain our Buy recommendation on the stock.
Retail space expansion on track: In 3QFY2011, PRIL added ~0.68mn sq. ft. of retail space, taking the total space to ~14.8mn sq. ft. We believe the company’s retail space expansion is on track, considering the company’s plan to add 1.2mn–1.5mn sq. ft. in 2HFY2011. Retail space expansion was skewed towards the value-retailing format, which accounted for ~55% of the retail space addition during 3QFY2011. We believe improved consumer sentiment coupled with retail space addition bodes well for PRIL in the long run.
Outlook and valuation: PRIL is better placed than its peers on account of having a presence across price points and categories. Apart from positives like on-track retail space expansion and revival in consumer sentiment, we believe the company's restructuring initiatives would enable it to enhance its focus on different segments along with providing it a good opportunity of value unlocking. At `242, the stock is trading at 15.6x FY2013E earnings and 1.2x FY2013E P/BV. We maintain our Buy view on the stock with an SOTP target price of `332.
Kindly click on the following link to view the Report.
If you have any further queries, feel free to call us on 022 39357600, Extn: 6865 or mail us at advisory@angelbroking.com
With best regards,
Fundamental Advisory Desk
Angel Broking
Akruti Star,6th Floor, Road No.7,MIDC, Andheri (E),Mumbai – 93.
Call : (91) (022) 39357600 Ext. 6865
Website : www.angelbroking.com
Disclaimer: Ours is an advisory role. The final decision and consequences based on our information is solely yours. Moreover, in keeping with regulatory guidelines, we do not guarantee any returns on investments. Prospective investors and others are cautioned that any forward-looking statements are not predictions and may be subject to change without notice.
No comments:
Post a Comment