Pantaloon Retail India Ltd— BUY—375—INR
Sector — Retail
Regd.Off.— Shyam Nagar, Jogeshwari (E), Mumbai - 400060
Listed — NSE, BSE.
Company overview—
Company was incorporated as Manz Wear Private Limited on October 12, 1987. Pantaloon Retail (India) Limited is India’s leading retailer with a turnover of Rs. 1073 crore (US$242 million) for the financial year ended June 2005. Company was converted into a public limited company on September 20, 1991 as pantaloon retail India limited. The group operates over 12 million square feet of retail space in over 71 cities and towns and 65 rural locations across India. The group owns several leading formats including Pantaloons, Big Bazaar, Food Bazaar, Home Town, eZone and Central. Pantaloon Retail was awarded the International Retailer of the Year - 2007, by the US-based National Retail Federation, the largest retail trade association and the Emerging Market Retailer of the Year 2007 at the World Retail Congress in Barcelona. PRIL employs over 15,000 people and has a customer base of over 20 crore Indians. Company is a part of a diversified conglomerate with presence in multiple consumer-centric businesses. Future Capital is the financial arm of the group and is involved in asset management in both private equity and real estate funds. Company operates through multiple consumer centric retail businesses present across segments like food, fashion, footwear, home solutions, consumer electronics, beauty, general merchandise, telecom, entertainment etc. The businesses are represented through multiple retail formats in lifestyle as well as value retailing.
Products & Services—
Company has a retail presence across various segments including food, fashion and footwear, home solutions and consumer electronics, books and music, wellness and beauty, general merchandise, telecom and IT, E-tailing, leisure and entertainment and financial products and services etc. Company operates multiple retail formats catering to a wide cross-section of the Indian society. In the Lifestyle retailing segment it has Pantaloons (department store), Central (seamless malls), Blue Sky (fashion accessories) and aLL (fashion apparel for plus size individuals). Company’s value retailing ventures include Big Bazaar (hypermarket), Food Bazaar (supermarket) and Fashion Station (popular fashion).
Joint Ventures & Partner Companies- Company has a stake in Galaxy Entertainment that operates chains like Chamosa, Rain, Lush, F123, Bowling Company, Sports Bar and Brew Bar. It also has a stake in Planet Retail Holdings that owns the franchisee of brands like Marks & Spencer, Guess, Debenhams, The Body Shop and Puma in India. PRIL has entered into joint ventures with kids’ apparel manufacturer - Gini & Jony and Liberty Shoes. Pantaloon Industries owns a majority stake in Indus League that markets brands like Indigo Nation, Scullers, Urban Yoga and Jealous.
Financials—
Pantaloon Retail (India) disclosed a phenomenal rise in standalone net profit for the quarter ended December 2009. During the quarter, the profit of the company rose 51.07% to Rs 506.70 million from Rs 335.40 million in the same quarter previous year. Net sales for the quarter for the quarter rose 25.38% to Rs 19,128.40 million, while total income for the quarter rose 25.38% to Rs 19,148.60 million, when compared with the prior year period. It posted earnings of Rs 2.57 a share during the quarter, registering 34.55% growth over previous year period.
Valuation—
Pantaloon Retail India has plans to invest more than Rs 5 billion to expand its seamless mall Central and the value fashion format Brand Factory over the next two years. PRIL will add 25 Brand Factory stores and 10-12 Central malls by 2011. Capital International also bought 0.69% stake in Pantaloon Retail (India) for Rs 408.27 million. Capital International via its account Emerging Markets Growth Fund Inc bought 1,091,114 shares of Pantaloon Retail (India) at Rs 374.18 a share. At CMP, stock is trading at 22.5 P/E multiple of its FY 2011 estimated EPS. We recommend investors to buy "Pantaloon Retail India Limited" with long-term investment horizon.
Sector — Retail
Regd.Off.— Shyam Nagar, Jogeshwari (E), Mumbai - 400060
Listed — NSE, BSE.
Company overview—
Company was incorporated as Manz Wear Private Limited on October 12, 1987. Pantaloon Retail (India) Limited is India’s leading retailer with a turnover of Rs. 1073 crore (US$242 million) for the financial year ended June 2005. Company was converted into a public limited company on September 20, 1991 as pantaloon retail India limited. The group operates over 12 million square feet of retail space in over 71 cities and towns and 65 rural locations across India. The group owns several leading formats including Pantaloons, Big Bazaar, Food Bazaar, Home Town, eZone and Central. Pantaloon Retail was awarded the International Retailer of the Year - 2007, by the US-based National Retail Federation, the largest retail trade association and the Emerging Market Retailer of the Year 2007 at the World Retail Congress in Barcelona. PRIL employs over 15,000 people and has a customer base of over 20 crore Indians. Company is a part of a diversified conglomerate with presence in multiple consumer-centric businesses. Future Capital is the financial arm of the group and is involved in asset management in both private equity and real estate funds. Company operates through multiple consumer centric retail businesses present across segments like food, fashion, footwear, home solutions, consumer electronics, beauty, general merchandise, telecom, entertainment etc. The businesses are represented through multiple retail formats in lifestyle as well as value retailing.
Products & Services—
Company has a retail presence across various segments including food, fashion and footwear, home solutions and consumer electronics, books and music, wellness and beauty, general merchandise, telecom and IT, E-tailing, leisure and entertainment and financial products and services etc. Company operates multiple retail formats catering to a wide cross-section of the Indian society. In the Lifestyle retailing segment it has Pantaloons (department store), Central (seamless malls), Blue Sky (fashion accessories) and aLL (fashion apparel for plus size individuals). Company’s value retailing ventures include Big Bazaar (hypermarket), Food Bazaar (supermarket) and Fashion Station (popular fashion).
Joint Ventures & Partner Companies- Company has a stake in Galaxy Entertainment that operates chains like Chamosa, Rain, Lush, F123, Bowling Company, Sports Bar and Brew Bar. It also has a stake in Planet Retail Holdings that owns the franchisee of brands like Marks & Spencer, Guess, Debenhams, The Body Shop and Puma in India. PRIL has entered into joint ventures with kids’ apparel manufacturer - Gini & Jony and Liberty Shoes. Pantaloon Industries owns a majority stake in Indus League that markets brands like Indigo Nation, Scullers, Urban Yoga and Jealous.
Financials—
Pantaloon Retail (India) disclosed a phenomenal rise in standalone net profit for the quarter ended December 2009. During the quarter, the profit of the company rose 51.07% to Rs 506.70 million from Rs 335.40 million in the same quarter previous year. Net sales for the quarter for the quarter rose 25.38% to Rs 19,128.40 million, while total income for the quarter rose 25.38% to Rs 19,148.60 million, when compared with the prior year period. It posted earnings of Rs 2.57 a share during the quarter, registering 34.55% growth over previous year period.
Valuation—
Pantaloon Retail India has plans to invest more than Rs 5 billion to expand its seamless mall Central and the value fashion format Brand Factory over the next two years. PRIL will add 25 Brand Factory stores and 10-12 Central malls by 2011. Capital International also bought 0.69% stake in Pantaloon Retail (India) for Rs 408.27 million. Capital International via its account Emerging Markets Growth Fund Inc bought 1,091,114 shares of Pantaloon Retail (India) at Rs 374.18 a share. At CMP, stock is trading at 22.5 P/E multiple of its FY 2011 estimated EPS. We recommend investors to buy "Pantaloon Retail India Limited" with long-term investment horizon.
Source: Internet (Valuenotes by Abhishek Jain)
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