Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  
Google
Web www.equitybulls.com
Research

| More

Q3FY21 Company update - Shoppers Stop - ICICI Direct

Posted On: 2021-01-19 22:22:29 (Time Zone: Arizona, USA)


SSL reported better than expected revenue recovery rate to the tune of ~71% in Q3FY21 vs. our estimation of 65%. The revenue recovery rate is impressive given the fact that it lagged peers with recovery rate of mere 35% in Q2FY21. Revenue for the quarter declined by 28.8% YoY to Rs. 707.6 crore with footfalls reaching 50% of pre-covid levels vs. mere 20% in Q2FY21. Non-metro cities (Tier-II/III cites) continued to recover at a faster pace (down 23% YoY) vs. stores in metro cities (down 39% YoY). Eastern regions performed better with trends sustaining in January as well. Omni-channel strategies continue to be the key thrust with digital sales at 3x YoY and 1.75x QoQ (6% of sales, up 430 bps YoY). Deep discounting (liquidation of private label inventory) and inventory provision (Rs. 3.5 crore) resulted in gross margin contraction of 400 bps YoY to 38.6%. Quarterly cash burns declined significantly owing to cost saving initiatives (achieved ~Rs. 75 crore in Q3) with PBT losses narrowing down significantly to Rs. Rs. 27.7 crore vs. Rs. loss of Rs. 136.5 crore in Q2FY21 (PBT: Rs. 62.9 crore in Q3FY20). Going ahead, management remains cautiously optimistic on demand recovery and expects normalcy by Q2FY22E.

Valuation & Outlook

For YTDFY20, negative FCF stood at Rs. 305 crore. In a bid to strengthen the b/s, the company had proposed right issues worth Rs. 300 crore which was fully subscribed. Subsequently, company retired debt worth Rs. 125 crore and is net cash positive of Rs. 46.0 crore as on December 2020. Management expects to open 10-11 stores in FY22E, with addition of ~ 2.5 lakh sq. ft. It is also looking to shut 5-7 unviable stores in FY22E. Of the targeted Rs. 450 crore cost savings in FY21E, company has already achieved ~ Rs. 390 crore in YTDFY21. We believe certain cost rationalisation measures to be structural in nature which should aid profitability in coming years. We broadly maintain our earnings estimates for FY22/23E and expect RoCE to improve steadily to ~10% by FY23E. MD's strategic growth roadmap with improvement in key parameters like SSSG and private label share would be critical factors to watch out for. We maintain HOLD rating on the stock with a target price of Rs. 228 (7.0x FY23E EV/EBITDA).

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_ShoppersStop_CoUpdate_Jan21.pdf

Shares of SHOPPERS STOP LTD. was last trading in BSE at Rs.209.8 as compared to the previous close of Rs. 206.2. The total number of shares traded during the day was 7741 in over 350 trades.

The stock hit an intraday high of Rs. 210.95 and intraday low of 205. The net turnover during the day was Rs. 1615978.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com


Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only. www.equitybulls.com, its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. www.equitybulls.com or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.





Other Headlines:

4th Industrial Conclave - Bullish undertone, favourable valuation - HDFC Securities

Sanofi India - Weak quarter; sequential improvement - ICICI Securities

Sunteck Realty - All eyes on upcoming launches - ICICI Securities

Company Update - Tata Motors - ICICI Direct

Q4CY20 Company Update - Mahindra CIE Automotive - ICICI Direct

Event Update - Hindalco - ICICI Direct

EY report launch at BioAsia 2021 - Moving the needle: Healthcare industry in a post-COVID world

Initiating Coverage - Dalmia Bharat Ltd - HDFC Securities Retail Research Desk

Initiating Coverage - Mastek Ltd - HDFC Securities Retail Research Desk

Hindalco Industries - Status quo maintained - ICICI Securities

Tata Motors - India business scaling in the right direction - ICICI Securities

IPO Review - Heranba Industries Ltd

Company Update - Narayana Hrudayalaya - ICICI Direct

Ambuja Cements - Market share sustenance key for rerating - ICICI Securities

ADD on Astral Poly Technik - An 'astr'onomical growth story - HDFC Securities

FMCG Sector Update Report - Divergence narrows; refocus on core - HDFC Securities

Maintain REDUCE on Jubilant FoodWorks - More legs for growth; reflecting confidence on core - HDFC Securities

Torrent Power - Growth acceleration - ICICI Securities

Mahindra CIE Automotive - CY20 performance closes on a strong note - ICICI Securities

Q3FY21 Company Update - V-Guard Industries - ICICI Direct

Quant Pick - Indus Towers - ICICI Direct

Q4CY20 Result Update - Ambuja Cement - ICICI Direct

Q3FY21 Company Update - Nesco Ltd - ICICI Direct

Maintain BUY on Ambuja Cements - Healthy quarter; multiple triggers ahead - HDFC Securities

Heranba Industries Ltd. - IPO - Sound Financials & Promising Outlook Augur Well

India Equity Strategy Report - Quarterly flipbook: Q3 - upgrades galore! - HDFC Securities

Earnings Wrap Q3FY21: Encouraging quarter, broad based recovery under way!

Shilpa Medicare - USFDA import alert at Jadcherla unit - ICICI Securities

Q3FY21 Company Update - Indian Bank - ICICI Direct

Quant Pick - Torrent Power - ICICI Direct

GE T&D India - Strong cashflow - ICICI Securities

Q3FY21 Result Update - Graphite India - ICICI Direct

Q4CY2020 Result Update - Varun Beverages - ICICI Direct

Q3FY21 Company Update - NBCC Ltd - ICICI Direct

Quant Pick - United Breweries - ICICI Direct

Q4CY2020 Result Update - Nestlé India - ICICI Direct

Q3FY21 Result Update - Time Technoplast - ICICI Direct

Healthy Business Performance Puts ITC Stock Recovery on Track

Gold - Feb 17, 2021 - Reliance Securities

Maintain REDUCE on Nestle India - Steady revenue show; employee cost dents margins - HDFC Securities

Varun Beverages - Q4 CY20 Result and Concall Update - YES Securities

Nestle India - Q4 CY20 Result Update - YES Securities

Reiterate BUY on JMC Projects - Some hits, some misses - HDFC Securities

Varun Beverages - Strong volumes; higher margins - ICICI Securities

Computer Age Management Services - Play on industry AUM growth - ICICI Securities

Nestle India - Just a tad underwhelming (given the high benchmarks expected from Nestle India) - ICICI Securities

NHPC - Earnings robust; projects on track - ICICI Securities

Maintain BUY on ITD Cementation - Gradual recovery shaping up - HDFC Securities

Techno Electric & Engineering - Strong margins, healthy growth outlook - ICICI Securities

Time Technoplast - Outlook upbeat; execution remains key - ICICI Securities



Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2020