Well here it comes; I wish I can repeat the history of my first stock selection with my first recommendation except selling it too early.
Vishal Retail
Current price – 31
Target – 90
Timeframe – 2 years
Name must be scary to all who so ever had followed it till now. The main reason for me to recommend this as the management has gone into really safe hands now. It’s all time low being 25rs.its still very near to its bottom, it has already seen worst and all is factored in its price and things are only going to improve from here on.
Vishal retail is perfect example of what can over leveraging can do to a flourishing business and why the feet should be grounded even when you are on the real high. Recently Shriram group and TPG have bought the promoters stake and you can observe the improvements in the nearby Vishal retail stores and you will see that people are coming back to the store. There are no numbers as such to back my recommendation, still lots of debt which buyers already must have planned for. Both the buyers h ave deep pockets and I’m sure can take Vishal retail by places from here. And just to verify about management just go through the performance of Shriram transport finance.
I have to be bit conscious with my recommendations that’s why the target of 90 is also conservative.
Thanks.
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