Buy Pantaloon Retail India for a price target of Rs 460 says FirstCall
June 8, 2010 by admin
Filed under Brokerage Recommendations, General
Firstcall Research in its Research Report dated June 7, 2010 has come out with a recommendation of a buy rating on the stock Pantaloon Retail India with a price target of Rs 460.
The Research Report says “At the current market price of Rs 400.00, Pantaloon Retail India is trading at 49.83 x FY10E and 36.4 x FY11E respectively.
Price to Book Value of the stock is expected to be at 3.41 x and 3.12 x respectively for FY10E and FY11E. Earning per share (EPS) of the company for the earnings for FY10E and FY11E is seen at Rs 8.03 and Rs 10.99 respectively.
Operating profit and Net profit of the company are expected to grow at a CAGR of 11% and 22% over 2008 to 2011E respectively.
On the basis of EV/EBITDA, the stock trades at 13.11 x for FY10E and 12.99 x for FY11E. In view of the management’s decision to realign the business of the Company, including recent transfer of ‘value retail business’ to its wholly owned subsidiary, the performance of the quarter ended and nine months ended would not be comparable with the previous years corresponding periods.
The Company proposes to evolve to the consolidated reporting from the coming financial year to give holistic view of the performance. We recommend buy in this particular scrip with a target price of Rs 460.00 for Medium to Long term investment,”
