Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Departmental stores continue to perform well…
Shoppers Stop Ltd’s (SSL) Q4FY11 revenues were lower than our
estimates due to lower than expected space addition and lower revenue
per square feet. Consolidated EBITDA came in lower at 4.7% in Q4FY11
due to lower gross margins on account of a change in the product mix.
SSL reported a PAT of | 7.7 crore (lower than our estimated | 18.6 crore)
on the back of higher than estimated HyperCity losses. However,
HyperCity has turned positive at the store level in Q4FY11 though it still
posted a marginal loss on a full year basis. In FY11, SSL’s topline, EBITDA
and PAT increased by 54%, 20% and 20%, respectively, to | 2,323.2
crore, | 131.0 crore and | 43.2 crore, respectively. SSL plans to open 24
stores in FY12E of which it has already opened six in April 2011. We
believe that the expansion of retail space and better performance from
HyperCity, going forward, augur well for Shoppers Stop.
Space addition and HyperCity’s turnaround to aid future growth
In FY11, SSL added 0.3 million sq ft taking its total retail area to 3.4
million sq ft. In FY12, the company plans to add 10 departmental
stores, eight Crossword stores, three Home Stop outlets and three
HyperCity stores. Of these, SSL has already opened two
departmental stores, two Crosswords, one Home Stop and one
HyperCity in April 2011. This will lead to a space addition of 0.75
million sq ft taking the total space to 4.1 million sq ft. SSL will
require a sum of | 125 crore for the same and is confident of
generating the same through internal accruals.
HyperCity has reported a positive EBITDA of | 0.9 crore in Q4FY11
and a marginal loss of | 0.2 crore for FY11. Like to like sale growth
has also been strong at 11% during Q4FY11 and 19% for FY11.
Valuation
We are positive on the future prospects of the company. The robust
space addition plans, turnaround of HyperCity and improvement in
operating margin due to changed business model augur well for SSL. We
expect a strong 28% revenue CAGR during FY11-13E and expect the PAT
to triple to | 125 crore in FY13E. We have valued the stock at 0.8x
EV/sales (on FY13E sales of | 3,833 crore). We reiterate our belief in the
future prospects of the company with a BUY rating on Shoppers Stop
Other Highlights – Q4FY11
• Revenue per sq ft (for departmental stores) remained flat YoY at |
2,141 as some stores were added towards the end of the quarter
and their contribution to the topline would be minimal
• SSL’s departmental stores reported 29% growth during Q4FY11
while all formats taken together grew by 22%. Like to like sales
growth during the quarter stood at a healthy 14% with stores in
existence for more than five years growing by 7%
• SSL’s loyalty club (First Citizen) members crossed the 2 million
mark to reach 2.01 million members contributing 73% to the
topline
• Footfalls increased 31% YoY to 77.2 lakh during the quarter
Other Highlights – FY11
• Revenue per sq ft (for departmental stores) increased by 7% YoY
to | 8,158
• Departmental stores reported 28% growth while all formats grew
by 23%. Like to like sales growth for the year was 17%
representing the revival in consumer demand. Stores that have
been in existence for more than five years also grew by 11%
Other Highlights – HyperCity
• HyperCity’s revenues increased 50% YoY in Q4FY11 and 84% in
FY11 albeit on a smaller base. Like to like sales growth during the
quarter was 11% while that for the full year stood at 19%
• Revenue per sq ft stood at | 1,465 during the quarter and | 6,377
on an annual basis
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Departmental stores continue to perform well…
Shoppers Stop Ltd’s (SSL) Q4FY11 revenues were lower than our
estimates due to lower than expected space addition and lower revenue
per square feet. Consolidated EBITDA came in lower at 4.7% in Q4FY11
due to lower gross margins on account of a change in the product mix.
SSL reported a PAT of | 7.7 crore (lower than our estimated | 18.6 crore)
on the back of higher than estimated HyperCity losses. However,
HyperCity has turned positive at the store level in Q4FY11 though it still
posted a marginal loss on a full year basis. In FY11, SSL’s topline, EBITDA
and PAT increased by 54%, 20% and 20%, respectively, to | 2,323.2
crore, | 131.0 crore and | 43.2 crore, respectively. SSL plans to open 24
stores in FY12E of which it has already opened six in April 2011. We
believe that the expansion of retail space and better performance from
HyperCity, going forward, augur well for Shoppers Stop.
Space addition and HyperCity’s turnaround to aid future growth
In FY11, SSL added 0.3 million sq ft taking its total retail area to 3.4
million sq ft. In FY12, the company plans to add 10 departmental
stores, eight Crossword stores, three Home Stop outlets and three
HyperCity stores. Of these, SSL has already opened two
departmental stores, two Crosswords, one Home Stop and one
HyperCity in April 2011. This will lead to a space addition of 0.75
million sq ft taking the total space to 4.1 million sq ft. SSL will
require a sum of | 125 crore for the same and is confident of
generating the same through internal accruals.
HyperCity has reported a positive EBITDA of | 0.9 crore in Q4FY11
and a marginal loss of | 0.2 crore for FY11. Like to like sale growth
has also been strong at 11% during Q4FY11 and 19% for FY11.
Valuation
We are positive on the future prospects of the company. The robust
space addition plans, turnaround of HyperCity and improvement in
operating margin due to changed business model augur well for SSL. We
expect a strong 28% revenue CAGR during FY11-13E and expect the PAT
to triple to | 125 crore in FY13E. We have valued the stock at 0.8x
EV/sales (on FY13E sales of | 3,833 crore). We reiterate our belief in the
future prospects of the company with a BUY rating on Shoppers Stop
Other Highlights – Q4FY11
• Revenue per sq ft (for departmental stores) remained flat YoY at |
2,141 as some stores were added towards the end of the quarter
and their contribution to the topline would be minimal
• SSL’s departmental stores reported 29% growth during Q4FY11
while all formats taken together grew by 22%. Like to like sales
growth during the quarter stood at a healthy 14% with stores in
existence for more than five years growing by 7%
• SSL’s loyalty club (First Citizen) members crossed the 2 million
mark to reach 2.01 million members contributing 73% to the
topline
• Footfalls increased 31% YoY to 77.2 lakh during the quarter
Other Highlights – FY11
• Revenue per sq ft (for departmental stores) increased by 7% YoY
to | 8,158
• Departmental stores reported 28% growth while all formats grew
by 23%. Like to like sales growth for the year was 17%
representing the revival in consumer demand. Stores that have
been in existence for more than five years also grew by 11%
Other Highlights – HyperCity
• HyperCity’s revenues increased 50% YoY in Q4FY11 and 84% in
FY11 albeit on a smaller base. Like to like sales growth during the
quarter was 11% while that for the full year stood at 19%
• Revenue per sq ft stood at | 1,465 during the quarter and | 6,377
on an annual basis
No comments:
Post a Comment