Aashish Tater, head of research at Fortunewizard.com advising selling Pantaloon Retail and buying Pantaloon Retail (India) DVR.
Aashish Tater, head of research at Fortunewizard.com advising selling Pantaloon Retail and buying Pantaloon Retail (India) DVR .
Tater told CNBC-TV18, “Let me take a call on the entire FDI sector and the euphoria that it got set in. We had a sell report on Pantaloon Retail even after the FDI report actually had come. However, we had an exit report and even at current levels we feel the potential of Pantaloon with the group lies much less than when it gets transferred to Aditya Biral Nuvo .”
”Now the second aspect is that the value of Pantaloon as a stock is not more than Rs 150-160 given what has disappointed us on the development from FDI aspect. That is why we have been downgrading this entire sector. The basic reason being very simple that until and unless the entire state join hands it does not make much of a sense for large players to come in and have that big reach. So eventually what will happen that the valuation that people were looking at they got disappointed and that is why you have seen a correction from Rs 250 to Rs 175. And we are still feeling that if you want to keep Pantaloon in your portfolio then Pantaloon DVR would be a better switch from Pantaloon and this will give you a fresh air of Aditya Birla,” Tater added.
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