Thursday, 29 November 2012

Liberty Shoes can move to Rs 140: SP Tulsian


Tulsian told CNBC-TV18, "What I like about Liberty Shoes is their distribution network and their strong brand bouquet. They have over 12 brands in their bouquet. They are the top five makers of the leather footwear in the world making about 50,000 pairs per day. If you go by their distribution network they have 150 distributors, 400 exclusive showrooms and about 6,000 multi-brand retail outlets of their Liberty Shoes.

He further added, "The market cap is close to about Rs 185-190 crore. The debt in the books of the company is close to about Rs 80-85 crore, which has been largely availed for working capital finance. Nothing has gone for financing the fixed assets of the company. That also adds up favourable point for the company, which virtually you can call it as a debt free company, because Rs 80-85 crore working capital against the current assets backed by the value of about Rs 150-175 crore is not very large."

"If you go by their top-line of about Rs 300 crore on an annualized basis because first half has not been very exciting on the bottom-line front, because they had a PAT of close to about Rs 2 crore for the first half on a top-line of Rs 145 crore. Generally I treat this company within a bracket of Rs 4-5 EPS."

"If you really go by the comparable peers like Bata or maybe the liking for the retail, because retail stocks are now coming back into the focus and probably that is the theme which I have chosen today by picking up CESC as well as Liberty Shoes, because this can also be taken as a retail stock. The promoter holding is quite healthy at 65-66 percent, HNIs and large investors are holding close to about 20-22 percent. So taking all this into consideration again stock looks quite good and I feel that stock can move to Rs 140 in next one year or so."
http://www.moneycontrol.com/news/stocks-views/liberty-shoes-can-move-to-rs-140-sp-tulsian_788367.html

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