@seshukumar – retail is an extremely tough business with limited or no barriers to entry..in India real estate costs are prohibitive which have led to a fall of many retailers due to over aggressiveness.,.
The bet here is on the managements flawless execution of a differentiated strategy to focus on aspirational markets where larger players have limited presence and are unlikely to focus in near future. Even in a tough consumer demand scenario (last five years) where growth for retailers has been tepid, management has shown great perseverance and grown profitably with no debt.
There are of course multiple variables that need to be tracked such as same store sales growth, debt, inventory etc.
| Subscribe To Our Free Newsletter |
