This request for my view on Pantaloon Retail at Rs 316 (FV Rs 2) just came in from Srikanth…says he a ‘big’ blog follower….Thanks !…Hope ‘big’ as not in weight and size !, Srikanth …..unless you’re describing your heart or wealth of mind or monies !
Srikanth has reminded me of this listed Retail Play…Kishore Biyani’s Pantaloon Retail……If you look at the extreme ends of the calendar year 2010,then you may conclude It has not played out at all…beginning at Rs 400 levels and ending 10% lower at Rs 360-Rs 370 levels…and then last week collapsing 20% to the current 52 week low of Rs 316…..But check out the High in 2010….Rs 557 intra day in July 2010…so clearly it’s been a Traders nightmare in 2010….having been pumped as a stock recommendation by many brokerage houses
The Shareholding pattern too is interesting…It’s an Institutional Favourite…At September 30,2010,Promoters held 44.78%,FIIs held a strong 24.40 % while domestic Institutions held 18.53%
I’m intrigued by this Retail Play and shall be studying it’s Business Model a bit deeper and soon too….It’s restructured to concentrate on the four major domestic consumption segments of Food,Fashion,General Merchandise and Home Goods that includes Electronics and Furniture and Home Improvement
It has achieved reasonable scale and geographical spread with great potential going forward….It is now concentrating on improving supply chain efficiencies which are simply critical for profits and survival…..
At this stage,should you have Pantaloon Retail in your Equity Portfolio ?….The other peer group choices are Tata’s Trent at Rs 873 (FV Rs 10) and now Chandru Raheja’s Shoppers Stop at Rs 339 (FV Rs 5)…In revenue scale Pantaloon Retail simply towers over these
Pantaloon Retail Shareholders under a Scheme of Arrangement also will now hold 1 share of FV Rs 10 of Future Mall Management Ltd for every 20 shares of FV Rs 2 held by them in Pantaloon Retail
In 2009/10,the company made a QIP of Rs 500 crs issuing 1.58 cr shares at Rs 316…..One crore warrants too have been issued to the promoters that can be exercised for conversion to Equity at Rs 400/share by December 2011
Company is planning to raise Rs 750 crs more this year…..in FY 2010/11 it plans to increase operating retail space to 13.25 million feet from 11.65 million it had in FY 2009/10