Thursday, December 4, 2008

Angel neutral on Vishal Retail

(My Original Blog Post: -*
Angel Broking has recommended a neutral rating on Vishal Retail in its November 28, 2008 research report. "Vishal Retail (VRPL) is the fastest growing Retail player in India clocking CAGR of around 89% over FY2005-08. It is a niche player with strong focus on the Value Retailing segment catering majorly to consumers in Tier-II and III cities. It is currently present in around 100 cities."

"The company is set to grow its Top-line and Bottom-line at a CAGR of 40% and 8% respectively, over FY2008-10E. Even though at current levels of Rs 68, the stock is trading at very attractive valuations of 3.2x FY2010E Earnings and 0.4x FY2010E P/BV, there are concerns over its high Debt-to-Equity ratio, which is expected to be 2.7x in FY2010. Hence, we Initiate Coverage on the stock, with a Neutral recommendation," says Angel Broking's research report.


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