Cantabil Retail India - Reviews

[chetan]

Anand Rathi's Views on Cantabil Retail India Ltd,

Looking at the sectoral demand and the past financial performance the long term outlook for the company looks positive. Comparing with the peers it looks fairly priced and therefore we recommend to Subscribe.

Company has been profitable for the last 3 Financial Years. Stay tuned for more updates.

[chetan]

RR Finance has the following Views on the Public Issue,

Net revenue of the company increased by 88% to Rs 137.3 cr in the year ended FY’09 as compared to Rs 73 cr in the year ended FY’08. Net Profit of the company increased by 114% to Rs 6.2 cr in FY’09 as compared to a net profit of Rs 2.9 cr in FY’09.At Rs 135, the higher price of the band, the issue is available at a P/E of 11x indicating undervalued.

The company is introducing itself in retail segment which is the most attractive segment in Indian Industry. The company has average fundamentals. We recommend subscribe.

[sunil]

Prabhudas Liladhar Analyst Gautam Duggad has a SUBSCRIBE recommendation,

CRIL’s diversified product basket in the discount apparel segment, coupled with wide retail network, provides strong edge in the highly fragmented and competitive marketplace. Not only has Cantabil scaled up its business (Turnover up 9x and profits 12.5x in 4 years), it has also improved its operating margin by nearly 620bps in last four years and with the commencement of proposed facility at Bahadurgarh, it will provide further impetus to its margin profile. Given the proposed store expansion plans, we expect CRIL to witness strong growth in the medium term. At the higher band, valuations at ~15.4x FY10 EPS look reasonable in comon with its peers. Higher inventory, working capital requirements and leverage (2.1x preissue) constitute key risks.