Do not see sharp rebound in Pantaloon Retail: Ashu Madan

Ashu Madan, president of core client group at Religare Securities does not see turnaround in the price movement of Pantaloon Retail. According to him, however, if the market goes positive drastically then crossing Rs 220 level for the stock won’t be difficult.

Madan told CNBC-TV18, “Pantaloon Retail turned out to be one of the biggest overbought post-FDI and then ever since the correction started and then post-midcap carnage this stock is also affected along with the rest of the stocks. Virtually from Rs 240-260 levels to Rs 140 it has virtually halved during the last three months which is very severe for a stock like Pantaloon.”
He further added, “I still feel that immediate I do not see any respite or a turnaround in the price movement. Since he has seen so much of a loss, since he has entered at Rs 220 level which I personally feel is difficult to come, but the only silver lining is that Rs 125-130 could be a level above which it should hold and consolidate for sometime. I would not say it would be an outperformer, but in line with the market there could be some bounce back, maybe Rs 160-180 level which we have seen in the recent past also.”
“A similar question came last week also by one of the callers that what would be the best price to get out of. So maybe at some bounce back Rs 160 plus level if we get in the short-term that would be a good level to get out. I do not think immediately or probably in this year until something drastically goes positive for the market which certainly does not look like Rs 220 is a difficult price to come,” Madan added.