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Thursday, November 19, 2009

Store One Retail - Earlier Indiabulls Retail - Stock To Buy For 2010 ?

This is my first stock idea in the series "Stocks To Buy For 2010" which we started few days back. We are going to cover many well known and well performing stocks but at the same time I strongly believe that we should keep eye on few small cap stocks and turnaround stocks which could fetch us multi-bagger investment returns. Store One Retails (earlier Indiabulls Retail) looks such one stock to me.

Indiabulls recently renamed the company as Store One Retail India Ltd from Indiabulls Retail Services Ltd, in a bid to align the corporate identity with the branding of the stores.

Store One Retail - Earlier Indiabulls Retail - Stock To Buy For 2010 ?
The company has hired a clutch of fashion designers such as Manoviraj Khosla, Ritu Kumar, Monisha Bajaj and others for the rebranding exercise, to design the feel of the store, layouts and logos and so on. Store One has already launched the rebranded store in Nagpur last weekend and is planning to launch one more store this weekend in Pune. It is also planning to launch its Mumbai store next year and one in Delhi a couple of months after launching the Mumbai store, as published recently in a newspaper. The rebranded stores will have more value-for-money products and have more shop-in-shops concepts.

Apart from those shut for the rebranding exercise, Indiabulls has shut four Megastores in the past year. Currently, it has a Happy store each in Pune and Faridabad and plans to open one more Happy store in Pune soon.

Indiabulls entered retailing in late 2007 with the acquisition of Piramyd Retail from the Ashok Piramal Group for Rs 208 crore. It acquired 42 stores from the acquisition, which included 33 smaller stores and nine bigger lifestyle stores.

Indiabulls Retail made a net loss of Rs 90 crore in FY 2009 and a net loss of Rs 18.3 crore in the June quarter of FY 2010. The company made losses of Rs 128 crore in FY 2008.

According to CEO of Store One retail, Mr. Anil Lepps, company could turnaround in a year and a half. This company was earlier known as Pyramid retails and it's IPO was priced at Rs.130. It's lifetime high was 300. With retail sector to be one of the fastest growing sectors in India for next few years, if this Indiabulls company turns around faster and generates cash, this stock could become multi bagger for investors in long run.

This article is part of the series "Best Stocks To Buy For 2010 - Let's Share Ideas". You can find updated list of other articles in this series, as and when published, here.

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