Pantaloon Retail on this forum under the topic The Multibagger Portfolio when it was at Rs 1125. Personally I continue to hold the stock for the past 3 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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