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Rakesh Jhunjhunwala is considered to be the greatest investor in Indian Market. He is supposed to have made Rs 5000 crores by just investing Rs 5000 in Indian Stock Market. Rakesh Jhunjhunwala guru mantra to be successful in stock market is as enumerated below:

(a) He advises people to become interested in a stock when none is interested in the same stock. As per him BUY RIGHT & HOLD TIGHT for years to come. He has been holding few stocks for last 10 years and he is still minting money from those stocks.

(b) He further advises that one should not follow big investors blindly as their risk profile and long term goals with time frame may be difficult to be followed by retail investor.

(c) Market is supreme and every thing is reflected in the price and thus their is no point in fighting the trend as market is always right.

(d) One should be able to create a balance between the fear and greed.

(e) As per his words one has to learn the stock market trading as none can teach the market as stock market experience is the best teacher.

Thus follow Rakesh Jhunjhunwala advice in stock market, BE PATIENT and grow big like Warren Buffet or this iconic man from Dalaal Street.

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Friday, November 14, 2008

CARE assigns `PR1+` rating to Pantaloon Retail (India)

CARE has assigned a `PR1+` rating to the proposed CP issue of Rs 2 billion of Pantaloon Retail (India) (PRIL). The proposed CP issue would have tenure up to one year. The CP would be carved out of the sanctioned working capital limits of the company. Instruments with this rating would have strong capacity for timely payment of short-term debt obligations and carry lowest credit risk.

The rating derives its strength from PRIL`s proven track record in the organized retail business in India, pan-India presence across multiple formats, demonstrated ability to raise capital as required and adequate retail space tied-up for stated medium term plans.

The rating is constrained by expected support that PRIL may need to provide for its subsidiaries and Joint Ventures (JVs) including towards the capital-intensive insurance business. Ability of the company to control real estate lease rentals, retain talent, maintain profitability margins in an increasingly competitive industry scenario and performance of the subsidiaries and JVs will be the key rating sensitivities.

PRIL is a professionally managed company led by Kishore Biyani, who is one of the entrepreneurs in the retail sector in the country. PRIL is one of the major organized retail players in India. It commenced operations in 1987 and has an early mover advantage over other players in the country. As at 30 June 08, PRIL operates through a variety of retailing formats in value and lifestyle segments spread over an area of 7.86 million (mn) square feet across 57 cities and about 16 states.

PRIL`s lines of business comprise food, fashion and general merchandise. Around 70% of PRIL`s sales are derived from value formats like Big Bazaar and Food Bazaar, the balance is derived from lifestyle formats like Pantaloon Megastores (PMS) and Central. Over a period of time, the company has demonstrated steady track record in establishing stores in multiple formats across India and successful operation of the same. All of PRIL`s stores are taken on lease, not owned, thus restricting its capital expenditure. However, this strategy exposes PRIL to the risk of rising lease rentals.

PRIL`s investments in subsidiaries and JVs amount to more than 20% of net worth as at end FY07. This exposes PRIL to the risk of performance of these subsidiaries and JVs. The revenue model of many of these entities is partially linked to PRIL for customer acquisition. Many of these ventures are at inception stage and are expected to require support from PRIL at regular intervals if they are unable to tap external sources.

Shares of the company declined Rs 6.75, or 2.8%, to trade at Rs 235. The total volume of shares traded was 10,808 at the BSE (3.32 p.m., Friday).


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DISCLAIMER: The author is not a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and that you confirm the facts on your own before making important investment commitments.

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