store one india ltd

Discussion in 'Ask A Query About Your Stock Picks And Portfolio' started by desi man, Jun 9, 2015.

  1. desi man

    desi man New Member

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    Pl give me suggestion on store one India ltd.I am new in this field I always be thankful for this
     
  2. Meenakshi Razdan

    Meenakshi Razdan Administrator Staff Member Moderator

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    What is it about Store One India that has caught your attention? It was formerly known as 'Indiabulls Retail Services Ltd'. It is a micro-cap (Rs. 71 cr) and operates retail stores in Pune and Nagpur. The company reported poor results in FY 14-15. For the full year ended March 2015, sales rose 14.04% to Rs 134.37 crore. However, the net profit declined 33.92% to Rs 23.24 crore.

    At first glance, I can't spot anything interesting about Store One. If there is anything specific that you have in mind, let us know.
     
  3. desi man

    desi man New Member

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    Many many thanks for your quick reply. I think if it work in only two cities and generate so much cash.then why not go for expansion in other cities ..any idea about its expansion plan in future and if it happen then obviously rerating of this stock I am expectking pl give me idea..I know u have much more information than me..thanks
     
  4. stockguru

    stockguru Active Member

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    Well for expansion there are two issues. One is capital the other being competition. Each company has to atleast think about these two things first before even planning to spread out to different regions. If they decide to expand even then they would have to wait for profits as most of retail stores takes months to years to get into green. If you are interested in the kind of fashion retailing then you can study companies like Shoppers Stop and Trent India Ltd. These companies have more established brands of stores in the country and by reading their annual reports and research reports you could find plenty of more information about the sector.
     
  5. Meenakshi Razdan

    Meenakshi Razdan Administrator Staff Member Moderator

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    I wish this was true ... but it isn't. We will know from the management's discussions and the annual reports what the expansion plans are.

    Generally speaking, retail appears to be a tough business to be in. The rentals are high, there is intense competition and also the prefernece of customers to shop online through flipkart, snapdeal etc.

    The point made by @stockguru is also valid.
     
  6. desi man

    desi man New Member

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    Today store one given 7 times return...
     
  7. desi man

    desi man New Member

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    Now my latest pick is cerebraint for long term
     
  8. Guru Vachaal

    Guru Vachaal Let's discuss the fundamentals..

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    Congratulations for your multibagger pick. Cerebraint has such a high PE.
     
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