Shoppers Stop - March 2013 Results Preview - Motilal Oswal

- We expect SHOP to report 15% increase in sales to INR6.2b. SSS growth should be ~5%.

- We estimate EBITDA margin at 4.6%, still below the usual trend of 7-8%, as new stores continue to see weak traction. PAT is likely to decline 16% due to weak traction in new stores and consequent lack of operating leverage.

- Hypercity would continue to be a drag on consolidated profitability.

- SHOP has added one Shoppers Stop department store during 4QFY13.

- The stock trades at 50.2x FY14E EPS and 34.3x FY15E EPS. Maintain Neutral.

Source : Equity Bulls

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