Firstcall Research is bullish on Shoppers Stop and has recommended buy rating on the stock with a target of Rs 448

in its September 9, 2011 research report. Shoppers Stop is an Indian department store chain promoted by the K Raheja Corp Group (Chandru L Raheja Group), started in the year 1991 with its first store in Andheri, Mumbai. Shoppers Stop Ltd has been awarded "The Hall of Fame" and won The Emerging Market Retailer of the Year Award by World Retail Congress at Barcelona, on April 10, 2008. Shoppers Stop is the only retailer from India to become a member of the prestigious Intercontinental Group of Departmental Stores, Switzerland. The companys flagship business of departmental stores is manifest in Shoppers Stop. It offers customers an international shopping environment and a world class experience through its 43 stores in 17 cities. Shoppers Stop Ltd. has reported net profit of Rs 116.82 million for the quarter ended on June 30, 2011 as against 100.19 million in the same quarter last year, an increase of 16.60%. It has reported net sales of Rs 3930.25 million for the quarter ended on June 30, 2011 as against Rs 3434.98 million in the same quarter last year, a rise of 14.42%. Total income grew by 15.51% to Rs 3967.65 million from Rs. 3434.98 million in the same quarter last year. During the quarter, it reported earnings of Rs 1.42 a share. At the current market price of Rs.390.00, the stock is trading at 37.67 x FY12E and 32.54 x FY13E respectively. Earning per share (EPS) of the company for the earnings for FY12E and FY13E is seen at Rs.10.35 and Rs.11.99 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 14% and 25% over 2010 to 2013E respectively. On the basis of EV/EBITDA, the stock trades at 18.29 x for FY12E and 16.26 x for FY13E. Price to Book Value of the stock is expected to be at 4.69 x and 4.10 x respectively for FY12E and FY13E. We expect that the company will keep its growth story in the coming quarters also. We recommend BUY in this particular scrip with a target price of Rs 448 for medium to long term investment, says Firstcall Research report.