Koutons Retail may test Rs 1000: Maheshwari

Ashish Maheshwari, Managing Director of India Capital Markets is of the view that Koutons Retail may test Rs 1000.

Maheshwari told CNBC-TV18, "Koutons Retail has delivered amazing results. The kind of quarterly numbers, which came, are identical to the numbers, which the company delivered in FY07. Besides this if we see the business model of the company it is a very good model and like in FY05 the company was having just 75 stores, now the company has reached a level of 1,175 stores, then next year they are talking of around 1,800 stores. So it is a good retail story and here they score higher compared to their nearest competitors Vishal Retail or Pantaloon because their business model is a franchisee driven business model where the growth of its stores can be done quite faster instead of putting up their own funds."

He further added, "The company has recently also forayed into ladies garments and kids garments. So what we expect is that the margin growth will be even further high in coming times for the company. This company will grow at the rate of 50% in next two-years. Besides, in this company the floating stock is also very less like if we see the retail floating stock is hardly 3%. So we don’t see any downfall coming in the stock price in coming time and when the company will deliver their FY09 results the stock may touch around Rs 1,000 level also." 

Disclosure: Analyst has recommended Arshiya International to his clients.