Buy Shoppers Stop; target of Rs 537: ABMoney

Aditya Birla Money's report on Shoppers Stop (SSL)

"SSL is taking small steps in right direction to boost profitability for both its key businesses – Shoppers Stop and Hypercity. As initiatives for omni channel gets revealed over next 6-9 months, street will start discounting additional potential from the same wef FY16E & onwards. We have not built in any additional sales potential from omni channel model in our assumptions and will factor in once it is launched full fledged."

"We are valuing the "Shoppers Stop" standalone business on FY17E P/E ratio of 27.0x with rolled over Mar-16 fair value of Rs 469.4 per share. We have valued 51% stake in Hypercity on FY16E EV/sales multiple of 1.0x and all equity investments as on FY14 balance sheet on book value. Our SOTP Aug16 revised fair value per share comes to Rs 537.3/share and we reiterate BUY rating on the stock with revised price target of Rs 537.3/share", says Aditya Birla Money research report.

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