23 September 2008
PROOF OF THE PUDDING............
Some time ago we discussed a veritable banquet of investment delight- Pantaloon Retail (You may like to check my posts for the month of june). I received scathing criticism from Talespinner for not giving a clear recommendation. I promised him I'd do it after the annual results. So here goes.
The company has come out with its annual results and it is heartening to note that the core operating business i.e. retailing, is doing very well. The Profit Before Tax has jumped 116 %. This is after accounting for a 126% increase in depreciation and a doubling of interest costs.Its total income rose by 52 per cent to Rs 5052.67 crore in FY 2007-08 as compared to Rs 3328.77 crore during the last fiscal. The Board has also recommended a 25 % dividend.
Well now, Ladies and Gentlemen, "Dinner is Served". Please help yourself to a generous helping of Pantaloon Retail. Cover charges are only Rs 285 per plate. With God and Kishore Biyani willing, in a years time, look for a price target of Rs 500.
Talespinner, now howz that for a recommendation!
..........IS IN THE EATING
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