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Last Updated : Oct 14, 2018 12:39 PM IST | Source: Moneycontrol.com

Accumulate Shoppers Stop, target Rs 728: Rudra Shares

Deal with Amazon has boosted the topline of Shoppers Stop making it debt free leading to a strong balance sheet. Further, well build liquidity makes the stock a strong buy candidate, says Chhitij Jain of Rudra Shares & Stock Brokers.

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Chhitij Jain

Deal with Amazon has boosted the topline of Shoppers Stop making it debt free leading to a strong balance sheet. Further, well build liquidity makes the stock a strong buy candidate.

Shoppers operating margin is expected to improve in near-term by 7-8 percent with expected recovery in store sales growth to about 5-7 percent. Additionally, Rs 150-200 crore of cash generation is expected annually in the books.

Moreover, with the advent of the festive season, the launch of "Wardrobe refresh" by the company offering over 150+ brands under one roof would add numbers to the topline. We suggest, accumulate with the target of Rs 728.

Disclaimer: The author is Head- Equities at Rudra Shares & Stock Brokers. The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
First Published on Oct 13, 2018 11:56 am
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