Please read the DISCLAIMER at the bottom of the blog.

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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Thursday, January 15, 2009

Pantaloon Retail hit hard by eco slowdown, sales fall (Part of Rakesh Jhunjhunwala Portfolio )

Here is a verbatim transcript of Reema Tendulkar’s comments on Pantaloon ( Part of Rakesh Jhunjhunwala Portfolio) CNBC-TV18.

It is looking very bad. The sales have fallen for the first time, and it has, in fact, gone into negative territory. The fear is that going forward as well sales are going to decline.

If we look at the December same-store sales, which is a very important metric because it eliminates the portion that is added to sales from opening new stores, for its value segment that includes prominent stores like Food Bazaar and Big Bazaar has gone down by 4%. In its home format, it is down close to about 10%, and its lifestyle segment is down close to about 14%.

Even in all these segments, it is not the food and merchandise that has taken a hit. It is the electronics, furniture and high value international brands that have taken a hit. Therefore, it implies that consumers have cut back on their discretionary spend.

This is not surprising because their concerns are large. Consumer sentiment is extremely weak. In spite of Pantaloon announcing heavy discounts, promotional campaigns, it hasn’t boosted sales. Also, there has been immense pressure on their retail real estate. Malls aren’t being opened on time and are not achieving their required occupancy, and hence Pantaloon has cut back on its rollout plans and has, in fact, deferred it. They have a target of achieving about 4 million square feet of adding floor space in this fiscal, but they might fall short by about 1 million square feet.

The flipside is all this pressure is helping it get better rentals. But net-net the impact has been very negative. So, although the long-term India growth story may remain intact, in the short-term there is definitely a cause for worry.

As per shareholding pattern of Dec 08 Qtr, Rakesh Jhunjhunwala continues to hold 2,330,895 shares of Pantaloon retail

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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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