May 26, 2012, 01.00 PM | Source: Moneycontrol.com
Motilal Oswal has maintained neutral rating on Pantaloon Retail, in its May 16, 2012 research report.
Motilal Oswal (more)
“Pantaloon Retail 3QFY12 (June year end) results are below estimates with core retail PAT down 76% YoY to INR120m. EBITDA increased 29.3% due to 110bp YoY margin expansion, 58% higher interest burden and 35% higher depreciation dragged PAT.”
“SSS growth in Value retail and Lifestyle segments declined to 3% each; Home retailing SSS declined by 7.3%. PF has reported expansion in both gross and EBITDA margins across standalone and FVRL due to various cost cutting measures. PF has entered into an agreement to divest 25% stake in Pantaloon format retail stores to Aditya Birla Nuvo (ABNL). PRIL will issue debentures to ABNL worth INR8b at mutually agreed terms, convertible into equity shares of the resulting entity i.e. Pantaloons Format business. PF has also announced capital infusion of IN2b from Bennett Coleman at INR245/share, by way of cash infusion and not equity for advertising. We believe equity dilution post stake sale in Pantaloon format indicates the rising debt pressures on the Group. We withhold estimates beyond FY12 pending clarity on residual operations post Pantaloon format stake sale. The stock trades at 29.3x FY12 EPS estimate of INR4.8. We are Neutral on the stock,” says Motilal Oswal research report.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
To read the full report click here
BFSI, retail, pharma to be impacted most by Ind AS: Survey
Motilal Oswal consolidated Dec '15 sales at Rs 284.69 crore
Motilal Oswal Financial Services has reported a co
Mumbai has highest potential for modern retail in India: Study
Mumbai region offers big opportunity for retailers
FDI in multi-brand retail of food won't harm local mkts: Report
Arvind Q3 profit falls 5% to Rs 103 cr, brand & retail up 12%
Operating profit (earnings before interest, tax, d
Stocks in news: DLF, KEC Intl, JM Fin, Motilal Oswal, Mphasis
DLF | Bajaj Auto | Tata Steel | Hexaware Technolog