Comprehensive Risk analysis of shoppers stop presentation

• India : Retail Industry Overview 2011
• Shoppers Stop: An Overview
• Store Formats
• Strategic Alliance
• Type Of Retail Outlets
• Approach
• Vision
• International Brands
• Loyalty Program
• Customer Satisfaction Index
• Adverse Financial Analysis
• SWOT Analysis
• Risk Points raised by the Auditors
• Risk Factors Analysed
• Findings and Recommendations
• Competitor Common Stock Comparison

• Indian Retail Market Share: 22% of GDP
• Contribution towards Total Employment: 8%
• Total Retail Market : US $450 billion
• Expected Growth in Retail Market: US $804.06 billion by
2016, market is expected to grow at 12% over the next 5
years and 7% during the next 10 years.
• Compounded Annual Growth Rate (CAGR) of Indian Retail:
13.3%
• Organized Retail Market: US $450 billion (5.5% of total market)
• Expected Growth in Organized Retail Market: Expected to grow
at 12.4% by 2016 and to US $200 billion by 2020.

Source: India Retail Report 2012

HEADQUATERS Eureka Towers,9th Floor, B Wing, Mindspace, Link
Road,
Mumbai, Maharashtra-400064
INDUSTRY Retail
TYPE Public Company
STATUS Operating
COMPANY SIZE 8000 employees
NUMBERS OF STORES 51
2012 REVENUES Rs. 1947.869 crore
NET PROFIT Rs. 64.26 crore
TOTAL RETAIL 4.78 million sq. ft. as of 30th September 2012
AREA
FOUNDED 1991

Sources: http://corporate.shoppersstop.com/

SHOPPERS STOP: AN OVERVIEW
About SHOPPERS STOP Ltd.

Shoppers Stop Ltd., a pioneer in modern retailing in India, has been promoted by K Raheja Corp.
Group (Chandru L. Raheja Group), one of the leading groups in the business of real estate
development and hotels in the country.
Shoppers Stop Ltd along with its Subsidiary Company Hypercity Retail (India) Ltd and Joint Venture
Companies Timezone Entertainment Pvt. Ltd and Nuance Group (India) Pvt. Ltd. operates more
than 4.78 million sq. Ft. as of 30th September 2012 in the country.
Shoppers Stop and its associate companies are involved in retailing through department stores,
specialty stores, entertainment zones and large hypermarkets.

Management- SHOPPERS STOP Ltd.
Chandru L Raheja Chairman / Chair Person B S Nagesh Vice Chairman
Govind Shrikhande Managing Director Ravi C Raheja Director
Deepak Ghaisas Director Gulu L Mirchandani Director
Neel C Raheja Director Nitin Sanghavi Director
Shahzaad S Dalal Director Nirvik Singh Director

Sources: http://corporate.shoppersstop.com/

Shoppers Stop Ltd. Consolidated with SSL

SS Department Stores Business Subsidiary Companies 30% JV Companies 2
71% Sales Contribution Sales Contribution 2% Sales Contribution

SSL Stake SSL Stake
51% 50%
•No of stores: 1
•GFA: 0.19 lacs sq ft
•No of stores: 54 • No of stores: 12
•GFA: 30.62 lacs sq ft. SSL Stake
• GFA: 12.35 lacs sq ft. 36.82%
• Sales as of Sep 2012 : Rs. 406 Cr
• Sales for full year as of March • No of stores:18
2012 : Rs 761 Cr •GFA: 1.20 lacs sq ft.
• No of stores: 12
• GFA: 1.99 lacs sq ft. No of stores: 39 SSL Stake
GFA: 0.18 lacs sq ft. 100%

• No of stores: 82
• Own Stores : 41
•No of stores: 5 •10 – 11 : 35 lacs visitors
• GFA: 2.33 lacs sq ft. Well diversified portfolio
•GFA: 0.18 lacs sq ft. •11 – 12 : 72 lacs visitors to capture the consumer’s
wallet share

Note : Above figures as of 30TH September 2012.
Source: Shoppers Stop Annual Report 2011-12 GFA: Gross Floor Area

• Shopper's Stop Ltd. has entered into a non exclusive retail
agreement with world-renowned cosmetics major Estee Lauder to
open M.A.0 Cosmetics stores in India.
• Shopper's Stop Ltd. has a 51% stake in Hypercity Retail (India) Ltd.
• Mothercare PLC of UK, the largest specialist retailer for infant and
toddler care, is now in India.
• Shopper's Stop Ltd.'s entry into airport retailing is marked by a joint
venture with The Nuance Group AG of Switzerland, the world's
leading airport retailer.
• Shopper's Slop Ltd has forayed into the Entertainment sector by
acquiring a 36.82% stake in Timezone Entertainment Private
Limited which is in the business of setting up & operating Family
Entertainment Centres (FECs).

Source: Shoppers Stop Annual Report 2011-12

TYPE OF RETAIL OUTLETS

Shoppers Stop Ltd.

Departmental Store-
Hypermart- HyperCity -12 Specialty Retailing-138
Shopper’s Stop- 54

Beauty, Cosmetics
Parenting Products- Crossword Home Products Retailing-
Retailing- MAC, Estee
Mothercare- 5 Book store- 82 HomeStop- 12
Lauder Clinique- 39


TYPE OF APPROACH

75 per cent of the
total sales of SSL
comes from
metros and Tier-1
cities. SSL will open nearly 80 per
cent of the new stores in
the top 24 cities.

TRANSITIONED THE SHOPPERS STOP BRAND FROM
PREMIUM TO BRIDGE-TO-LUXURY
Luxury

Bridge to Luxury
2009

Premium

2005
Contemporary

Popular

Mass

Source: http://corporate.shoppersstop.com/investors/presentation-analyst.aspx

INTERNATIONAL BRANDS
Improved Product Mix and Brands Profile to Attract “Aspirational” Customers

• Jack & Jones, French Connection, CK
Jeans, GAS, ESPRIT, Tommy Hilfiger, Mustang
& Mango in apparel segment
• Loccitane, Lancome, MAC, Clinique & Estee
Lauder in cosmetics
• CK, Armani & Gucci in sun glasses
• Burberry, Nina Ricci, Diesel & Boss in watches

PRIVATE LABELS
SHOPPERS STOP PRIVATE LABELS
•Stop- Mens formal/casual/ethnic/womens western/ethnic, kids casual/ethnic
•Kashish – Mens & womens ethnic
•Life- Mens & womens Fashion
•Vettorio Fratini- Premium formal& semi formal mens wear
•Haute curry- fusion wear for women
•Elliza Donatein- corporate womenswear
•Ijeans wear- Mens denim

• The First Citizen
Shoppers’ Stop’s customer loyalty program is called The First Citizen. The
program offers its members an opportunity to collect points and avail of
innumerable special benefits. Currently, Shoppers’ Stop has a database of
over 25.03 lakh members who contribute to nearly 72% of the total sales of
Shoppers’ Stop.


CSI
100
80
60
40
20 CSI
0
May/06
Jan/06

Jan/07
May/07

Jan/08
May/08

Jan/09
May/09

Jan/10
May/10

Jan/11
Sep/06

Sep/07

Sep/08

Sep/09

Sep/10

May/11
Customer satisfaction index is calculated
based on the following parameters: There was a significant increase in
Merchandising Range and Quality customer satisfaction from year
Store Environment 2007 to year 2009, although there
Staff is a small decrease in customer
Transaction Efficiency satisfaction in year 2010 from year
Loyalty Programme 2009.
Schemes This may be due to increased
Promotions choices offered to the customers by
Customer experience in Shoppers Stop wrt the other stores and hence increasing
competitor stores expectations of the customer

Source: Shoppers Stop Annual Report 2011.12

PARAMETERS USE ADVERSITIES
Conversion Ratio Conversion is the ratio of the There has been a consistent fall in the
number of transactions (Cash consolidated conversion ratio starting
Memo) versus the total customer from financial year 2009-10 to 2011-
entry into the stores. Tracking 12. The financial year 2011-12 saw a
conversion helps the retailer fall by 1% to 23% from previous year
understand the productivity of his 2010-11 when it was 24%. A further fall
front-end store employees and the by 4% is expected in Quarter-II of
attractiveness of the merchandise Financial year 2012-13.
and services.
Like To Like Sales Volume (%) A comparison of this year's sales to last A consolidated consistent fall has been
year's sales in a particular company, noted in the LTL volume in October to
taking into consideration only those December 2011 by 5% and yet again in
activities that were in effect during both financial year 2011-12 by 4%. A further
time periods. Like-for-like sales is a
fall by 4% is expected in Quarter-II of
method of valuation that attempts to
Financial year 2012-13.
exclude any effects of expansion,
acquisition or any other event that
artificially enlarge a company's sales.

Private Level Sales (%) Company aims to provide a Although there has been a growth in
differentiated and unique offering to Consolidated Private Label Mix up to
the customer through its own private 6.4% during financial year 2011-12 but
labels as well as through Consolidated Private Label Sales
exclusive private brands. Growth has fallen by 2.4% during the
same period. A further fall by 13% is
expected in Quarter-II of Financial year
2012-13.

Source: Shoppers Stop Annual Report, 2011-12, Shoppers Stop Quarterly Report s of 2011-12

PARAMETERS DEFINATION AND ITS USE ADVERSITIES
Gross Marginal Return on GMROF helps to maximise the cash A consistent fall has been noted
Floor % (GMROF) margins. in the Consolidated GMROF :
 April to December 2011 by 6%
Quarter III of 2011-12 by 15%
Quarter IV of 2011-12 by 10%
Financial Year 2011-12 by 7%

Gross Marginal Return on GMROI helps to optimise inventory A continuous fall in Consolidated
Inventory % (GMROI) levels. GMROI (%) has been noticed
from financial 2009-10 at 4.25%
to 4.17% in 2010-11 and 4.01%
in 2011-12.
Gross Marginal Return on GMROL helps to increase labour A consistent fall has been noted
Labour % (GMROL) productivity. in the Consolidated GMROL :
 April to December 2011 by 2%
Quarter III of 2011-12 by 15%
Quarter IV of 2011-12 by 6%
Financial Year 2011-12 by 6%


PARAMETER USE ADVERSITIES
Operating Expenses There has been consistent steep rise noted in
Operating Expenses of both SSL Alone and
Consolidated:
 April to December 2011 to SSL- 21% and
Consolidated- 36%
Quarter III of 2011-12 to SSL- 23% and
Consolidated- 24%
Quarter IV of 2011-12 to SSL- 28% and
Consolidated- 26%
Overall Financial Year 2011-12 to SSL- 23% and
Consolidated- 33%
A further rise by 26% in SSL and 20% in
Consolidated version is expected in Quarter-II of
Operating Profit and The Ratio is used to analyze the Operating Profit of SSL (without exceptional
Operating Profit Margin(%) efficiency with which the company items) has decreased by 5% to Rs.14,391lacs
controls its selling and general and from Rs.15,211lacs in the previous year whereas
administrative expenses. Consolidated have fallen by 18% in 2011-12 from
its previous years. A further fall by 27% in SSL and
37% in Consolidated version is expected in
Quarter-II of Financial year 2012-13. Similarly
there has been a decrease in Operating Profit
Margin of SSL Alone from 8.53% in 2010-11 to
6.91% in 2011-12 and in Consolidated version
there has been a fall from 5.73% in 2010-11 to
3.70% in 2011-12.


Profit Before Tax (PBT) There has been consistent and substantial fall noted
in SSL Alone and whereas huge effects were
reflected on Consolidated financial figures:
Consolidated- 77%
Consolidated- 65%
Consolidated- 144%
Consolidated- 86%
A further fall by 65% in SSL and 212% in
Profit After Tax (PAT) There has been consistent and substantial fall noted
in SSL Alone and whereas major effects were
reflected on Consolidated financial figures:
Consolidated- 49%
Consolidated- 44%
Consolidated- 88%
Consolidated- 56%


Finance Charges Finance Charges have at times risen to
enormous level in both SSL Alone and
Consolidated financial figures:
 April to December 2011 to SSL- 30% (fall in
charges) and Consolidated- 58%
Consolidated- 72%
Consolidated- 35%
Overall Financial Year 2011-12 to SSL- 14%
(fall in charges) and Consolidated- 45%
Net cash used for investing There has been consistent shortage of
activities Consolidated cash available for investing
activities:
 April to December 2011 – Rs.16,0 66
Overall Financial Year 2011-12 – Rs.16, 584
A further fall by Rs.5, 858 is expected during April
to September 2012.


Gross Profit Margin Ratio The gross profit margin is used to The gross margin of SSL Alone has decreased
analyze how efficiently a company is during the year 2011-12 to 32.7% from 33.0% as
using its raw materials, labour and compared to the last year, principally on account
manufacturing-related fixed assets to of increases in levies and the transition in trading
generate profits. Higher Gross Profit models.
Margin means more efficient.
PAT Margin Ratio Net profit margin measures the The PAT margin of SSL Alone has decreased
overall efficiency of the business during the year 2011-12 to 2.9% from 4% as
compared to the previous year 2010-11.Whereas
PAT margin of Consolidated version has
decreased during the year 2011-12 to 3.38%
from 4.6% as compared to the previous year
2010-11.
Interest Coverage Ratio The interest coverage ratio is a The Interest Coverage Ratio of SSL Alone has
measure of the number of times a decreased during the year 2011-12 to 5.23%
company could make the interest from 8.9% as compared to the previous year
payments on its debt with its EBIT. 2010-11. Whereas Interest Coverage Ratio of
The lower the interest coverage Consolidated version has decreased during the
ratio, the higher the company's debt year 2011-12 to 4.91% from 8.83% as compared
burden and the greater the to the previous year 2010-11. Although it still
possibility of bankruptcy or default. remains within the ideal ratio limits.


Stock Turnover Ratio Number of time the stock has been The Stock Turnover Ratio of SSL Alone has decreased
turned over during the period and during the year 2011-12 to 2.7% from 3.7% as
evaluates the efficiency with which a compared to the last year 2010-11. Whereas Asset
firm is able to manage its inventory. This Turnover Ratio of Consolidated version has decreased
ratio indicates whether investment in during the year 2011-12 to 9.1% from 10.96% as
stock is within proper limit or not. compared to the previous year 2010-11.

Asset Turnover Ratio The Asset Turnover Ratio of SSL Alone has seen a
continuous decrease during 2010-11 to 3% from 3.4%
of 2009-10 and 2.7% during 2011-12 as compared to
its previous year 2010-11. Whereas Asset Turnover
Ratio of Consolidated version has decreased during
How well a company is utilizing its assets to the year 2011-12 to 1.54% from 1.59% as compared to
produce revenue. the previous year 2010-11.

Current Ratio Firm's commitment to meet financial Although the Current Ratio of SSL Alone is stable
obligation. Heavy ratio is undesirable as throughout the years and has rather increased to 1.5
it indicates less efficient use of funds. during 2011-12 as compared to 1.4 of previous year
2010-11, similarly Current Ratio of Consolidated
version resides 0.5 in 2011-12 and 0.47 in 2010-11 but
does not lie in the ideal range and hence evident to
the fact that company is not using its funds efficiently
and needs improvement in it.


Debt Equity Ratio Although the Current Ratio of SSL Alone has
increased to 0.4 during 2011-12 as compared to
This is a measurement of how much 0.2 of previous year 2010-11 similarly Debt Equity
suppliers, lenders, creditors and obligors Ratio of Consolidated version resides 0.84 in 2011-
have committed to the company versus 12 and 0.in 2010-11, but does not lie in the ideal
what the shareholders have committed. range and hence evident to the fact that there lies
Long term solvency of the Company. a greater risk for creditors because the long term
solvency of the company is not correct and needs a
little attention. over the point.
Quick Ratio There is a shortage in the Quick Ratio of SSL Alone
of the company which during the period 2011-12
lies at 0.12 as compared to last year’s ratio to 0.14,
similarly Quick Ratio of Consolidated version
resides 0.12 in 2011-12 and 0.14 in 2010-11
therefore as far as the ideal ratio is concerned i.e.
0.5 it lacks way behind and hence is suffice to
Short term solvency of the Company. states that the company’s short term solvency
needs immediate attention and improvement.
Days Inventory Outstanding DIO gives a measure of the number of SSL Alone has experienced an increasing trend in DIO to
days it takes for the company's inventory 34.84 in 2011-12 from 35.53 in the previous year 2010-
(DIO) to turn over, i.e., to be converted to sales, 11 whereas in Consolidated version DIO is increasing
either as cash or accounts receivable. from 34.23 in 2010-11 to 38.97 in 2011-12, therefore
evidencing to the fact that the company is struggling to
convert inventories into cash or receivables.

Source: Shoppers Stop Annual Report, 2011-12, 2010-11 and 2009-2010 and Shoppers Stop Quarterly Report s of 2011-12

Return on Assets (ROA) SSL Alone has seen a decrease in ROA from 10.86% in
2010-11 to 10.73% in 2011-12, similarly in
This ratio indicates how profitable a Consolidated version ROA has decreased from10.65%
company is relative to its total assets. in 2010-11 to 9.61% in 2011-12.
Free Cash Flow There is a shortage in the Free Cash Flow of SSL Alone
of the company which during the period 2011-12 lies
at Rs.14, 421.99lakhs as compared to last year at
Rs.15, 053.08lakhs, similarly Consolidated version
Cash left behind after incurring of Capital figures resides at Rs.10, 849.07lakhs in 2011-12 as
Expenditure compared to Rs.13, 178.42lakhs in 2010-11.

Cash Flow to Debt Ratio This ratio provides an indication of a Company has seen a immense decrease in the ratio of SSL
company's ability to cover total debt Alone from 1.09 in 2010-11 to 0.17 in 2011-12.Similarly
with its yearly cash flow from Company also experiences a decrease in Consolidated
operations. version from 0.61 in 2010-11 to 0.28 in 2011-12.

Source: Shoppers Stop Annual Report, 2011-12, 2010-11 and 2009-2010 and Shoppers Stop Quarterly Report s of 2011-12

Return on Net Worth Company has experienced a substantial decrease
(RONW) in RONW of SSL Alone from 26.7% during 2010-
11 to 16.9% during 2011-12.

Return on Capital The company has experienced a decrease in
Employed (ROCE) ROCE of SSL Alone from 19.3% during 2010-11 to
12.8% during 2011-12.

Short Term Loans and There has been a rise in the Short Term Loans
Advances and Advances provided by the company to
Rs.4,012.47lacs during 2011-12 from
Rs.3,894.82lacs during previous year 2010-11.
Further it is expected to rise to Rs.5,861.1lacs
from April to September 2012.
Long Term Loans and There has been a rise in the Long Term Loans and
Advances Advances provided by the company to
Rs.25,028.65lacs during 2011-12 from Rs. 24,978
.29lacs during previous year 2010-11. Further it is
expected to rise to Rs.27,881.7lacs from April to
September 2012.


Debt Ratio There has been a rise in Debt Ratio of SSL Alone
It is used to gain a general idea as to from 0.43 in 2010-11 to 0.48 in 2011-12, similarly
the amount of leverage being used by a Consolidated version showed a fall from 0.57 in
company. 2010-11 to 0.60 in 2011-12.

Capitalization Ratio It is used to measure the Long Term There has been a rise in Capitalization Ratio in
Debt proportion in the Total Capital Consolidated Version of the Company from 0.45
structure of the Company. in 2010-11 to 0.70 in 2011-12.

Operating Cash Flow to Company has seen a fall in Operating Cash Flow
Sales Ratio to Sales Ratio of SSL Alone to 0.02 in 2011-12
It gives investors an idea of the company's from 0.08 in 2010-11, similarly fall has also been
ability to turn sales into cash. seen in Consolidated version to -0.001 in 2011-12
from 0.063 in 2010-11.
Free cash Flow to Company has seen a fall in Free Cash Flow to
operating Cash Flow Ratio Sales Ratio of Consolidated version to -20.60 in
2011-12 from 0.96 in 2010-11..


Fixed Asset Turnover Ratio Although there has been a rise in Fixed Asset
Turnover Ratio in Consolidated version of the
It is used to reflect a company’s Company from the previous year but there has
efficiency in managing the Fixed Assets. been a fall in SSL Alone from 5.51 in 2010-11 to
4.80 in 2011-12.
Capitalization Ratio It is used to measure the Long Term There has been a rise in Capitalization Ratio in
Debt proportion in the Total Capital Consolidated Version of the Company from 0.45
structure of the Company. in 2010-11 to 0.70 in 2011-12.

Short Term Debt Coverage Company has seen a fall in Short Term Debt
Ratio Coverage Ratio of SSL Alone to 0.20 in 2011-12
from 1.09 in 2010-11, similarly fall has also been
seen in Consolidated version to -0.02 in 2011-12
from 0.75 in 2010-11.
Capital Expenditure Company has seen a fall in Capital Expenditure
Coverage Ratio Coverage Ratio of SSL Alone to -0.49 in 2011-12
from 7.78 in 2010-11, similarly fall has also been
seen in Consolidated version to 0.06 in 2011-12
from 3.73 in 2010-11.


Price Earnings to Growth Company’s Expected PEG Ratio is 8 for the year
Ratio (PEG Ratio) It gives the investors an insight into the 2013-14 which shows that the stock is overvalued.
degree of overpricing or underpricing of a
stock's current valuation
Dividend Yield It shows how much a company pays out in There has been a fall in Dividend Yield of the
dividends each year relative to its share Company from 0.22%in 2010-11 to 0.19% in 2011-
price. 12.

Capital Expenditure Company has seen a hike in Capital Expenditure of SSL
Alone to Rs.(7, 617.57lakhs) in 2011-12 from
Rs.1,764.13lakhs in 2010-11, similarly fall has also been
seen in Consolidated version to Rs.(8, 123.32lakhs) in
2011-12 from Rs.3,697.52lakhs in 2010-11.

Stock in Trade There has been a rise in the Stock in Trade of the
company to Rs.21,204.01lacs during 2011-12 from
Rs.15,113.66lacs during previous year 2010-11.
Further it is expected to rise to Rs.21,239lacs from
April to September 2012.


Trade Payables There has been a rise in the Trade Payables from
other than MSME’s to Rs.21,656.71lacs during
2011-12 from Rs.24,622.74lacs during previous
year 2010-11. Further it is expected to rise to
Rs.29,586.1lacs from April to September 2012.
Other Current Liabilities Some of the Other Current Liabilities during
2011-12 have substantially risen from the
previous year 2010-11:
Current maturities of long term borrowings
(secured): Rs.4,000lacs whereas in P.Y it was
Rs.2,000lacs.
Interest accrued and not due on borrowings:
Rs.94.7lacs whereas in P.Y it was Rs.28.21lacs.
Creditors for capital expenditure: Rs.739.2lacs
whereas in P.Y it was Rs.536.10lacs.
Liability for gift vouchers/point award
redemptions: Rs.6,642.21lacs whereas in P.Y it
was Rs.5,758.23lacs.
Further Other Current Liabilities are expected to
rise to Rs.14,652.8lacs from April to September
2012.


Short Term Borrowings Short Term Borrowings during 2011-12 have
increased from the previous year 2010-11:
Loans from banks (secured): Rs.14,406.87lacs
whereas in P.Y it was Rs.10,548.95lacs.
Commercial papers (unsecured): Rs.4,000lacs
whereas in P.Y it was Rs.2,000lacs.
Further it is expected to rise to Rs.21,710.5lacs
from April to September 2012.
The performance of any company depends on PSI score haven fallen to 3.85 during the year
Partnership
the association and relationship it builds with 2011-12 as compared to 4.14 during the
Satisfaction Index (PSI) various vendors/ partners over a period
previous year 2010-11.
of time. To evaluate this satisfaction and
expectation, company has appointed CSMM
(Customer Satisfaction Measurement and
Management), a part of IMRB (Indian Marketing
and Research Bureau) to do an impartial
evaluation of our relationship with various
stakeholders. This helps your organisation
understand the expectations of various business
partners, current strengths and concern
areas thereby help set a clear roadmap for
improvement and better performance.


Net Worth 1) The Company has financial involvement in a
subsidiary company, namely Hypercity Retail
(India) Limited (‘Hypercity’) as follows:
Investment in Equity and Preference Capital of
Rs.20, 070.81lacs and Loans and Advances of
Rs.8, 730.68lakhs, making an aggregate
involvement to Rs.28, 801.49lacs. But Hypercity
continues to make losses and the accumulated
losses of Rs.36,402.66lacs as at 31st March, 2012
have substantially eroded its Net worth as at the
year end.
2) The Company has financial involvement in a Joint
Venture companies, namely Nuance Group
(India) Private Limited and Timezone
Entertainment Private Limited, as follows:
Investment in Equity and Preference Capital of
Rs.3, 641lacs in Nuance Group and Rs.1,
199.49lacs in Timzone and Loans and Advances
of Rs.200lakhs in Timezone, making an aggregate
involvement to Rs.3, 641lacs in Nuance Group
and Rs.1, 399.49lacs in Timezone.But Net Worth
of both the subsidiiaries have been substantially
eroded ias at 31st March 2012.


 First Citizens Club has continued to be one of the main strengths of our business. In the year gone by the programme has
exceeded the 2.5 million mark in memberships, making it one of the largest loyalty membership programs in the country across
sectors.
The company continues to invest in our front and back end processes and systems.
The company created a strong distribution and logistics network, with our four Distribution Centres covering more than
400,000 square feet handling over 400,000 SKUs per year, and working 24x7. The Company believes that the “hub – and-spoke”
model followed by it for its distribution network, will stand it in good stead for the expansion.
Company endeavors to make Shopping experience the differentiator.
The company assesses Customer Care Associates (CCAs) across all levels through assessment centres for promotion
decisions, career planning and succession planning. Company also conducts associate satisfaction survey every year and derive
Opportunities
ASI scores, which helps it in identifying the trust index scores of respect, credibility, fairness, pride with the organisation.
Company benefits from its Promoters’ association with the real estate business and their relationships with developers, which
have helped the company, acquire preferred properties at competitive rates.
The Company imparts special training to its employees to ensure that service is not compromised on. The company’s store
positioning in the “bridge to luxury” segment clearly sets apart its stores from those of the rest of the industry players.
Among the big players in the organized retail space in India, Shopper's Stop has always understood the criticality of
scale, availability and experience, and has been an eager adopter of advanced, cutting edge technology. To help drive its growth
strategy, Shopper's Stop is employing its reporting and analytics capabilities in the areas of merchandising, loyalty
management, distribution and logistics, sales performance, loss prevention, and financial analysis. SAS provided the retailer
with a business analytics framework for reporting and analytics using SAS Enterprise BI Server and SAS Enterprise Miner.
Access to standardized, timely and accurate data from its DRISHTI (Insight) data warehouse project, along with flexible
reporting functionality.

Source: Shoppers Stop Annual Report, 2011-12, www.mbaskool.com, www.cio.in, www.sas.com,

The company will be in expansion phase over next 36 months which will be a critical time as far as execution risk is concerned.
Rent is one of the largest components in a retail business fixed costs and the case is no different for the Company. Rentals are
expected to harden once again in the near term.
Slowing expansion due to dependence on real estate developer for completing projects during slowdown.
Certain levies / cascading effect of taxes on the business which are proving to be a very large burden as there are no modes for
the industry to recover or pass on these levies. Delay in the roll out of the GST regime is also a matter of concern.
The Company has invested in other entities and lower than expected returns from these entities will have an impact on the
cash flows and consolidated results of the Company
It has lesser promotional strategies on both Above the Line and Below the Line level compared to global leaders.
Operating expenses of the company have substantially risen throughout the years which had its adverse effects on the profits
of the financials of the company.
Severe consistent heavy hikes in Finance Charges have been proved to be a big matter of concern for the company. The needs
an immediate attention over the issue before it could consolidate its adverse effects on profits of the company.
 The funds available by the company are not being utilized by it in an efficient manner which reflects in its Current Ratio.
Company has both provided and obtained heavy financing and borrowings for itself as well as for its Associate companies
which until the current stage has failed to show its purpose and worth which takes a heavy toll out of the profit as a part of
interest charges.
The Net worth of Joint Venture Companies of SSL, i.e. Nuance Group (India) Private Limited and Timezone Entertainment
Private Limited has substantially been eroded as at 31st March, 2012. Based on the business plans of these companies and the
business valuation by an independent valuer, no provision for any loss is currently considered necessary in these financial
statements.
Subsidiary of SSL, Hypercity Retail (India) Limited continues to make losses and the accumulated losses of Rs. 36,402.66lacs as
at 31st March, 2012 have substantially eroded its Net worth as at the year end. Based on the Business plans, opportunities and
business valuation by an independent valuer, the Company considers that there is no loss for which a provision is currently
necessary in these financial statements.


The company is expecting to launch into its next expansion phase in the next 36 months. The Company’s strategy to increase
the number of departmental stores, and therefore improve city wise penetration in new cities, increase market share in existing
cities through additional new stores in those cities, and new stores in Tier-II cities, remains unchanged.
Hypercity which is a 51% subsidiary of the Company has shown encouraging performance, with an overall sales growth of
27.5% and like to like sales growth of 9% for the year.
Company has diversified into multiple formats viz, HomeStop which retails hard and soft furnishing, M.A.C. and Estee Lauder
which retails high end cosmetic products, Clinique which retails skin care products, Mothercare which retails infant and kids
merchandise and airport retailing, by tying up with The Nuance Group AG of Switzerland. The Company has also made a
successful foray into internet retailing through its e-retailing portal. The Company looks to focus and expand these formats.
Company believes that by it’s presence across all lifestyle categories in the departmental format, it’s strong brand value and it’s
presence in the books and music segment, it is best placed to bring in international brands into the country, thereby enriching
the product bouquet for it’s customers and in turn increasing opportunities for product diversification and profit enhancement.
After the clearance of FDI from the Rajya Sabha , Shopper Stop because of having an early presence in some International
brands may be have an upper hand in competing with the Global multibrand retail companies than its local rivals.
Preferred partner for international brands in various categories due to diversified presence.


Economic slowdowns have a direct impact on consumption. Retail, being the end service provider of consumption in the
supply/value chain, is bound to face difficulties in an environment of economic slowdown.
With India continuing to be an attractive retail market, the Company expects many new entrants into the sector, thus
increasing competition, also among existing rivals there is intense rivalry for new locations and quality real estate, therefore it
sets up the foundations for increased intensity of competition among existing rivals.
With the clearance of FDI from the Government of India, Shopper Stop together with the local multibrand retailers like Wills
Big Bazaar, Spencers, etc. Will also have to face severe competition from the global behemoths like Wallmarts.
Faced with increasing competitive pressure for customer wallet share, Shopper's Stop will have to improve customer
satisfaction and loyalty, increase its breadth of merchandise and expand store operations into new markets, while maintaining
profitability.


RISK POINTS RAISED BY THE AUDITORS
Following risk points were raised by the Auditors for the financial year 2011-2012:
• According to the Auditor’s opinion, a substantial part of fixed assets has not been disposed off by the Company during
the year.
• The Company has granted unsecured loans to one party during the year. At the year-end, the outstanding balance of such
loans aggregated Rs.8,730.68lacs (including interest) and the maximum amount involved during the year was
Rs.16,500.00lacs. The rate of interest and other terms and conditions of such loans are, in the Auditor’s opinion, prima
facie not prejudicial to the interests of the Company.
• According to the Auditor’s opinion the terms and conditions of the guarantees given by the company for loans taken by
its joint venture companies from banks are not prima facie prejudicial to the interests of the Company.
• Auditor’s attention is invited to Note 31 to the Consolidated Financial Statements regarding non-provision of service tax
for the period 1 June 2007 to 31 March 2010, on renting of immoveable properties given for commercial use, aggregating
Rs. 2,010.90lacs, pending final disposal of the appeal filed before the Honourable Supreme Court, inter-alia, challenging
the retrospective levy of the service tax. The matter is contingent upon the final outcome of the litigation.
• Pursuant to levy of service tax on renting of immovable properties given for commercial use, retrospectively with effect
from 1 June 2007 by the Finance Act, 2010, the Company has, based on a legal advice, and challenged the said levy and,
inter-alia, its retrospective application. The Honourable Supreme Court has passed an interim order dated 14th October,
2011, with regard to the levy of service tax on immovable properties rented out for commercial use including its
retrospective applicability from 1st June, 2007 in compliance of which, the Company has made an aggregate deposit of
Rs.1,824.88lacs in respect of the liability for such service tax up to 30th September, 2011. From October 2011, the
Company is accounting and paying for such service tax regularly as per directives of the Supreme Court. Pending the final
disposal of the matter, the Company continues not to provide for the retrospective levy aggregating Rs.1,659.56lacs for
the period 1st June, 2007 to 31st March, 2010.


RISK FACTORS ANALYSED
1) Liquidity Ratios : Current Ratio , Quick Ratio and Days Inventory Outstanding (DIO).
2) Profitability Ratios : Gross Profit Ratio, Net Profit Ratio, Operating Profit and Operating Profit Margin
Ratio and Return On Asset.
3) Debt Ratios : Debt Equity Ratio, Capitalization Ratio, Interest Coverage Ratio and Cash Flow To Debt
Ratio.
4) Operating Performance Ratios : Stock Turnover Ratio and Asset Turnover Ratio .
5) Cash Flow Indicator Ratios : Operating Cash Flow to Sales Ratio, Free Cash Flow, Free Cash Flow to
Sales Ratio, Short Term Debt Coverage Ratio and Capital Expenditure, Capital Expenditure Coverage
Ratio.
6) Investment Valuation Ratio : Price Earnings to Growth Ratio and Dividend Yield.
7) Sales and Volume : Conversion Ratio, Like to Like Sales Volume and Private Label Sales.
8) Inventory and Labour Efficiency : Gross Marginal Return on Floor(GMROF), Gross Marginal Return on
Inventory(GMROI) and Gross Marginal Return on Labour (GMROL).
9) Profit and Loss Account : Operating Expenses, Finance Charges, Profit Before Tax(PBT) and Profit
After Tax(PAT)
10) Non Current and Current Assets : Short and Long Term Loans and Advances, Stock in Trade and Fixed
Assets.
11) Current Liabilities : Trade Payables, Short Term Borrowings and Other Current Liabilities
12) Market : Market Analysis, Employees Stock Option Plan(ESOP) and Shareholding Pattern.
13) Company’s Internal Structure : Compensations and Remunerations.
14) Others : Contingent Liabilities, Net worth of Joint Ventures and Subsidiaries, Partnership Satisfaction
Index(PSI), Expansion Phase, Dependence on Real Estate and Promotional Strategies.

IMPACT AND RECOMMENDATIONS

Although there has been a rise in the Current Ratio from the previous year but still since 2008-09, the ratio has
consistently being out of ideal range which is causing a liquidity crunch situation thus creating more pressure on
the cash utilisation of the company.
Quick Ratio is even in more critical condition, it is not only decreasing from previous year but also far short of
what ideal ratio is considered. This raises a formidable questions on the short term solvency of the company
again putting a tremendous pressure on the cash utilization of the company in the short run.
On the other hand an increasing Days Inventory Outstanding(DIO) from the previous year shows that the
company is feeling pressure of converting inventories into cash or even receivables leading to rise in stock in
trade and further putting pressure on liquidity of the company keeping investor’s money largely on risk.
Therefore Company looks inefficient in managing its important working capital assets

As evident from the Current and Quick Ratio above, the Company’s liquidity issue is making cash trapped for a
longer time. Efforts from the company needs to be done on this front therefore the company can either increase its
Current Assets or rather should put its efforts to reduce its Current Investments in order to increase the ratios. In
short Current Assets should be enough to cover its Current Liabilities as currently Current Assets are inappropriate to
pay out all its Current Liabilities.
The Company should put efforts to convert inventories into cash or account receivables so that cash from inventory
sale is paid further to its suppliers for goods and services. Increasing DIO shows that the Company’s products are
either failing to attract customers or the demand of the Company’s product is decreasing thereby reducing or
squeezing cash availability.


The fall in Gross Profit Margin Ratio has signaled on the fact that the company has not efficiently utilized its
labour, raw materials and manufacturing related fixed assets to generate profits thus leading to fall in the value
of the Gross Profit.
On the other hand fall in Operating Profit Margin Ratio and Operating Profit together evidences the fact that
company has failed to control its selling and general and administrative expenses and thus leading to loss in
operating profit.
Further fall in Net Profit Margin Ratio supports the above mentioned Operating Profit Margin Ratio and Gross
Margin Ratio that Company’s profit has depleted due to lack efficient control of direct and indirect expenses.
A fall in Return on Assets(ROA) from the previous year shows that the management has remained inefficient in
employing the Company’s Total Assets to make a profit on it or rather earn a higher return on it.

As evident from the Gross, Operating and Net Profit Ratio above, the Company has struggled with efficiently
utilizing its direct and indirect expenses therefore company should find certain ways to curb its expenses to boost its
profit and to have a control over its day to day operations as the above fall in the ratios is also evidencing the fact to
the deficiencies in the Management decision making process too.
Company in order to improve its ROA should evolve certain ways to boost its returns on the assets available with it.


Rise in Debt Ratio and Debt Equity from previous year in both Alone and Consolidated format shows that the
company’s dependence on the leverage has increased because the Company has seen a tremendous increase in
the liabilities as compared to assets and mostly the debt part of the liabilities.
On the other hand rise in the Capitalization Ratio from the previous year indicate the investment quality of the
company. Further it shows the increasing dependence of the Company on the long term debt.
Further fall in Cash Flow to Debt Ratio which shows that Company’s cash flow is not efficiently utilized to serve
its total debt and also the weak cash flow situation which affects the cash generation and operation of the
company.

As evident from the Debt Ratio, Debt Equity Ratio and Capitalization Ratio, Company should reduce its dependence
on leverage i.e. Debt so as to reduce the risks involved in it as compared to its Equity therefore Company should
reduce or dispose some of its Debts on both the long and short term one’s with as quickly as possible as it is also
having a negative impact on the profit of the Company (from interest expenses) .
Company should either generate enough cash to improve its weak cash flow situation or should again most
probably as mentioned above should severely take certain actions to reduce the abundance of Debt taken by the
Company to realise some pressures on the cash.


The fall in SSL alone in the Fixed Asset Turnover Ratio form the previous year shows that especially SSL alone as
a company has been inefficient in managing its Fixed Assets, therefore failing to convert the Company’s Fixed
Asset are failing to generate sales and hence causing reduced sales when compared to the amount invested on
the purchase of the Fixed Asset.
Accompanying the above ratio, the fall in the Company’s Asset Turnover Ratio form the previous year also
shows that company has been inefficient in managing its Total Assets too, and hence Assets of the Company is
not generating enough cash in proportion to its investment value.

As evident from the falling Fixed Assets and Total Assets Ratios, Company should find ways to generate enough cash
in proportion to its investment value.


The fall in Operating Cash Flow to Sales Ratio from the previous year is signaling to the fact that the Company
has conducted majority of its sales in credit, hence impacting a cash shortage situation.
Accompanying the above ratio, the fall in Free Cash Flow and Free Cash Flow to Sales Ratio from the previous
year have also shown that there is insufficient cash available by the company for further acquisitions or
expansions required. Therefore boosting yet more cash crunch situation.
Further, fall in Short Term Debt and Capital Expenditure and Capital Expenditure Coverage Ratios leading to
insufficient cash to cover or service either the Short Term obligations as well as Capital Expenditure requirements
by the Company also consolidates the fact of substantial cash crisis problem.

As evident from the falling above mentioned ratios, it is very important for the company find ways to resolve its cash
crisis situations whether in increasing cash sales or reducing its operating expenditures so as to leave with the
company enough cash to cover its both short and long term obligations regarding debts or acquisitions or expansions
or any other further Capital expenditures as and when required.


PEG Ratio of 8 shows that the Company’s stocks are overvalued and hence it is expected by the investors that
the prices are going to fall the market’s current valuation.
Further, the fall in Company’s Dividend Yield shows that the dividend in relation to its per share value trading
has decreased from the previous year.

Company’s PEG Ratio shows Company’s stock to be overvalued as compared to the market valuation therefore
efforts should be made from the company to reach as close to the market valuation as possible.
Further Company’s Dividend Yield is not in its fine shape hence Dividend declared and paid out as compared to the
share price traded should be reevaluated so as to be in consonant with the trading share price.

FINDINGS AND RECOMMENDATIONS

A rising trend in Operating is indicating to the fact that the company is continuously failing to grasp and
attract the potential customers entering the store and converting their product seeking into purchasing it
from the store.
A similar falling trend in Like to Like Sales Volume shows that comparing this year's sales to last year's
sales in the company there has been a fall which also continues in further upcoming quarters.
Although an increase in the Private Label Mix has been noticed but more importantly the fall in the
Private Label Sales shows that the products being sold by the company under the brand name of other
companies are registering a fall and puts a question on the same.

Company should pay attention to increase the people visiting on store into potential customers, which will need
improved efforts from both the front end employees and also the attractiveness of the merchandise and services
either by introducing certain schemes or discounts or concessions together with the efficient customer service to lure
the visitors.
The products being sold by the company under the brand name of other companies are registering a fall and the
company should seriously think about the feasibility of continuing the same practice.


A falling trend in Gross Marginal Return on Floor, Inventory and Labour, clearly suggest that the
Company’s efficiency regarding labour and inventory productivity is declining consistently thus effecting
sales altogether of the company as well as the investments made on the inventory too.

Company should pay attention to increase its labour and inventory productivity by increasing various
initiatives to encourage the employees to produce greater results as well as thinking ways to place
investments on inventory in an efficient manner.


A rising trend in Operating Expenses is a major concern for the Company. A bigger factor contributing
to it are the tremendous hikes in Finance Charges during the year which are so severe that it has a taken
a heavy toll out of the profits of the company too and hence blocking lot of cash within itself so as to be
left for other obligations or expenditures.
Consolidating the above fact, the Profit before and after tax of the Company and its other Associate
Companies have bore the brunt of the above mentioned expenses.

Company should with immediate effect find ways to decrease the expenses especially the finance charges which are
consuming way too much cash available by the company therefore leading to a cash crisis situation and blocking
other major Capital expenditure or even short term obligations.


Short and Long Term Secured and Unsecured Loans & Advances by the Company have seen a growth to
both its Associate Companies and others under severe cash crisis situations which again have not been
beneficial for the Company and therefore it raises the basic questions on its existence, prudence, timing
and appropriateness itself. Also evidencing to the above fact Auditors in the Audit Report of financial
year 2011-12 have also raised the questions regarding on the prejudicial interest of the Company by
granting of an Unsecured Loans to a party on terms and conditions of such loan.
Auditors of the Company in its Audit Report of financial year 2011-12, has mentioned in their opinion
itself that inspite of the opportunity substantial part of Fixed Assets have not been disposed of during
the year which might have served an extra source of cash generation or rather would have relived the
Balance Sheet to certain extent .

Company should revisit and rethink about the prudence and feasibility of the extent and terms and conditions of
granting loans and advances to the other Companies especially at the crucial time when the Company is struggling to
maintain cash and profits for its own obligations and expenditures.
Company should dispose of the Fixed Asset whether scrapped or obsolete or otherwise wherever it is correct and
possible so as to generate certain cash if possible or to create enough space in the Balance Sheet to add on other
assets to its pool.


Short Term Borrowings, Trade Payables and Other Current Liabilities have all risen from the previous year
which shows the on the one hand Company’s rising obligations whereas on the other hand increasing
influence of Creditors and Borrowers on the functioning of the Company, which are both further
mounting pressures on profits and cash.

Company should invent and innovate more ways to settle their obligations and relieve the Company from severe Debt
ridden phase thereby making provisions and generating enough cash to fulfill all future and current obligations.


Market analysis of trading history of SSL at NSE in 2011-12 showed that on particular months like July,
August, October, December and February during the period the prices of the company fell and at times
fell to a substantial amount impacting volumes and turnovers of the Company.
There was no such evidence found during the study of its Annual report and part thereof that clearly
mentions that the Special Resolutions for ESOPs during 2010-11 and 2011-12 was passed in Annual
General Meeting(AGM) of the Company. However the company has granted ESOPs as on 24th March
2010 and 29th April 2011.
As per part 3 to 14 of the SEBI Guidelines 1999, approval of shareholders of the Company through Special
Resolution in the AGM is mandatory for the granting ESOP.
Company has used Black Scholes Option Pricing model in assessing fair value of the Options on its
ESOPs, which it yet an outdated and criticized valuation mechanism excluding many key factors from its
valuations some of them are like: Transportation Cost, Taxation Cost, Assuming Homogenous investor
demand and time duration etc.

Company should see that it gets its special resolutions required to be passed within the AGM and also the Company
should take NSE at the front when assessing market prices and exercise price of its ESOPs.
Company should also look and opt for better Option Valuation Models for far much better results and valuations.


As mentioned earlier among the points noted by the Auditors, Company regarding its disputed service
tax levy has not made any sort of Contingent Liability provisions as such so as to accumulate fund and
source the Contingency payments as and when required by it therefore leaving the Company no other
choice than to apply funds available with the Company itself.
Fall in Net Worth of both Subsidiary Companies and Joint Ventures of the Company together with fall in
Partnership Satisfaction Index from previous year shows us that Company is struggling with its Associate
Companies both in financials and in satisfaction level too.
Expansion Phase of 36 months of the Company is yet another worrying and crucial time factor where it
will be mostly vulnerable to market risks. Further dependence on Real Estate Promoters have really hit
hard to the company’s expansion duration and financials as affecting it in shape of high construction cost,
land rentals and delay in construction too due to slowing economy.
Company’s promotional strategies have been on a much lower sides both above and below the line
what is on usual expected from the size and scale of the company like this.

It will be a prudent practice for the Company to create provisions on Contingent Liabilities as will help the Company
is much better way managing its contingent payments in advance.
Company should also seek to strengthen its Joint Ventures and Subsidiaries by either revamping their operational
strategies or rethinking about prudence and feasibility of continuing the Partnership looking at the Company’s future
in the long run.
Company should create some innovative promotional and marketing advertisements and campaigns to increase the
product’s demand as well as to create more awareness about the Company’s product’s among the consumers.


The details of dues of Income-Tax, Sales Tax and Customs Duty which have not been deposited as on 31st
March, 2012 on account of any disputes are given below:
1) Company has not deposited Income Tax according to the Income Tax Act, 1961 which is pending in
CIT (Appeals) amounting to Rs.1, 042lacs for the period of 2004-06, 2008 and 2009.
2) Company has not deposited Sales Tax according to the West Bengal Value Added Tax Act, 2005
which is pending in Jt. Commissioner of sales Tax (Appeals) amounting to Rs.22.03lacs for the period
of 2009.
3) Company has not deposited Custom Duty according to the Customs Act, 1962 which is pending in
Commissioner (Appeals) amounting to Rs.12.23lacs for the period of 2008.
And as done earlier Company has not maintained at all any provision for such Duties and Taxes.

As mentioned earlier it will be better for the Company to stand a provision in the Balance Sheet for such amounts or
else their Balance Sheet is going to have an adverse effect of any such Contingent Liabilities.

COMMON STOCK COMPARISON (RS. In Crs.)
S no. Company Name Financials as on… Share Shares Market Net Debt Expected
Price Outstanding as Cap(Rs.) 2012(Rs.) Value(Rs.)
on March 2012
1 Tata Industries 31st March 2012 228.6 88.8 20,299.68 (961.2) 19,338.48
(Consolidated)
2 Pantalone Retail 30th June 2011 306.65 20.75 6,362.69 2,334.7 8.697.39
(Standalone)*
3 Bata (Consolidated)* 31st December 530.45 6.43 3,408.87 (190.00) 3,218.87
2011
4 Shopper's Stop 31st March 2012 389.15 8.26 3,212.91 367.69 3,580.59
(Consolidated)
5 Gitanjali Gems 31st March 2012 325.00 9.11 2,960.75 3,291.08 6,251.83
(Consolidated)
6 Trent (Standalone) 31st March 2012 949.20 2.72 2,586.52 (29.61) 2,556.91

7 Jubiliant Foodworks 31st March 2012 1,168.15 6.51 7,602.08 (12.94) 7,589.14
(consolidated)
8 Provogue 31st March 2012 14.55 11.44 166.39 273.27 439.65
India(Standalone)

Source: Danodia Capital Advisors Report July 2012
Source:As per research reports available by leading brokers like Goldman Sachs, Citi Group etc.

COMMON STOCK COMPARISON (RS. In Crs.)
S no. Company Name Sales 2012 Sales 2013 EBITDA 2012 EBITDA 2013 Net Income Net Income 2013
(Rs.) (Expected) (Rs.) (Expected) 2012 (Rs.) (Expected) (Rs.)
(Rs.) (Rs.)

1 Tata Industries 8,848.43 10,295.5 834.02 906 600.15 675.8
(Consolidated)

2 Pantalone Retail 4,778.9 5,504.4 505.3 572.90 55.80 75.40
(Standalone)*
3 Bata 1,812.00 2,132.70 300.20 390.60 185.40 246.60
(Consolidated)*

4 Shopper's Stop 2,737.41 3,444.00 104.80 178.40 19.01 65.00
(Consolidated)

5 Gitanjali Gems 12,498.27 14,050.50 807.59 970.80 487.25 531.00
(Consolidated)

6 Trent (Standalone) 821.79 923.27 NA 99.34 47.26 55.06

7 Jubiliant 1,018.64 1,430.20 187.69 270.40 103.29 155.50
Foodworks
(consolidated)
8 Provogue 609.59 696.55 59.69 103.03 25.03 47.85
India(Standalone)

Source: As per research reports available by leading brokers like Goldman Sachs, Citi Group etc.

COMMON STOCK COMPARISON
S no. Company Name EBITDA PAT (EV/Sales) (EV/Sales) (EV/EBITDA) (EV/EBITDA) (P/E) 2012 (P/E) 2013E (Rs.)
Margin Margin 2012 (Rs.) 2013E 2012 (Rs.) 2013E (Rs.) (Rs.)
(%) (%) (Rs.)

1 Tata Industries 9.43 6.78 2.19 1.88 23.19x 21.34 33.82 30.04
(Consolidated)
2 Pantalone Retail 10.57 1.17 1.82 1.58 17.21 15.18 114.03 84.39
(Standalone)
3 Bata 16.57 10.23 1.78 1.51 10.72 8.24 18.39 13.82
(Consolidated)
4 Shopper's Stop 3.83 0.69 1.31 1.04 34.17 20.07 169.01 49.43
(Consolidated)
5 Gitanjali Gems 6.46 3.90 0.50 0.44 7.74 6.44 6.08 5.58
(Consolidated)
6 Trent 0 5.75 3.11 2.77 0 25.74 54.73 46.98
(Standalone)
7 Jubiliant 18.43 10.14 7.45 5.31 40.43 28.07 73.6 48.89
Foodworks
(consolidated)
8 Provogue 9.79 4.11 0.72 0.63 7.37 4.27 6.65 3.48
India(Standalone)

Source: As per research reports available by leading brokers like Goldman Sachs, Citi Group etc.

Comprehensive Risk analysis of shoppers stop presentation

Comprehensive Risk analysis of shoppers stop presentation

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