Thinking about Store One Retail India as a Multibagger!

During the weekend, I was going through turn around companies.  The following company captured my attention:

Store One Retail India Ltd.

image

Store One Retail India is a chain of multi-brand stores including Allen Solly, Van Heusen etc.  It is an upcoming brand in the luxury & lifestyle retail sector.

The company belongs to Indiabulls group of companies.

Attractions

Sales Increase

2011: 3.2 Crores

2012: 51 Crores

2013: 89 Crores

Profit Increase

2011: –35 Crores (Loss)

2012: 12 Crores (Profit)

2013: 38 Crores (Profit)

Increase in Promoter Holdings

Increase in Promoter Holdings to 70%

Low PE

PE Ratio around 2.2

Quoting around Book Value

Book Value is 38 & Current Market Price is 37

Current Liabilities within Range

Current Liabilities around 31 Crores

Latest Sales is 90 Crores

Considering the Sales, Latest Net Profit figure, the Current Liabilities can be paid within 3 Years

Border of Midcap

Capitalization is around 90 Crores & thus playing in the border of Midcap (100 Crores)

Nine Criterias of Value Investing

History of Consistently Increasing Sales, Earnings & Cash Flow image
Durable Competitive Advantage image
Future Growth Drivers image
Conservative Debt (long term debt < 3 Net Profit) image
Return on Equity must be Above Average image
Low CAPEX required to maintain current operations image
Management is holding / buying the stock image
Price is Under Valued (< intrinsic value) image
Stock Price is consolidating image

 

Biggest Problem

From the house of Indiabulls

  • Alleged for Fraud
  • Vice President of IB Securities was arrested
  • Bad Image in the mind of Consumers through high interest rates from IB Financial Services

Summary

Considering the latest green figures, promoters holding percentage, I perceive the stock as a Potential Multibagger.  Will declare it in www.futurecaps.com once ensuring further aspects.

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