Wednesday, 10 July 2013

Future of Future Retail Limited

Hi ,
      Future Retail limited is a flagship company of future groups .
      After demerger of their PANTALOON brands and also the demerger of their Fashion business , this company is ready to be very focused market leader in the retail business of india . Its a must buy for the people who believe in the growth story of india . Mr Biyani is betting on India and I am betting on Mr Biyani .


 Main positive developments are as follows :
 
Reduction in Debt and comfortable debt equity ratios
Focus on core retail operations
 Increasing Brand value
Decreasing competitions
Retail in FDI to improve supply chains.
Promoters buying shares from the market ( small quantities )
Cash flow generating business
Real Estate value

Negatives :

Promoters attitude towards share holders
Law margin generating business

In conclusion , FRL should be bought between 85 to 95 in order to margin of safety principle .

Happy investing ,  

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