Koutons Retail India Ltd. had seen a stupendous rise in the retail sector in the last decade. It has built a brand name for itself and was the pioneer in this business. In 2007 they came out with an IPO priced at Rs.415 per share. The issue got over subscribed and the stock traded for more than double the issue price after listing. They have built a chain of over 900 stand alone stores and has a pan India presence.
But the company has hit upon hard times since the last one and a half years, mainly due to too fast expansion and bad debt management. The price of the share subsequently nosedived. At present, the scenario is that the company has initiated a CDR (Corporate Debt Restructuring) plan and the management is trying to salvage the situation and get the company back on track. The price of the share has fallen to an abysmal level of 26.50 right now. I reckon this is a stock aggressive investors & traders can pick up for a big bounce. If the CDR process gains momentum then this might even turn out to be a good long term investment. According to knowledgeable people, the Brand Value of 'KOUTONS' itself is worth much more than the current share price. So this is a stock which I would be willing to take a punt on. If it works, it could give huge gains.
Company website : http://www.koutonsparivar.com
Cheers!
Saturday, July 2, 2011
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