Upermarket Chain Operator Has An Equity Capital - Nov 28, 2008

Meanwhile, the BSE Sensex was up 103.89 points, or 1.15%, to 9130.61.On BSE, 30,771 shares were traded in the counter. The scrip had an average daily volume of 9986 shares in the past one quarter.The stock hit a low of Rs 65.10 so far during the day. The stock had a 52-week high of Rs 1001 on 15 January 2008 and a 52-week low of Rs 55.60 on 21 November 2008.The stock is up 21.40% from a recent low of Rs 55.60 on 21 November 2008.

The stock had underperformed the market over the past one month till 26 November 2008, falling 41.09% as compared to the Sensex's 3.74% rise. It had also outperformed the market in the past one quarter, falling 83.34% as compared to the Sensex's fall of 37.67%.The small-cap supermarket chain operator has an equity capital of Rs 22.40 crore. Face value per share is Rs 10.

The current price of Rs 67.50 discounts its Q2 September 2008 annualised EPS of Rs 7.29, by a PE multiple of 9.25.Vishal Retail is reported to have embarked on a new strategy to beat the economic downturn. It will launch 60 new stores over the next few months, all of them would be franchises.In the franchise model, the franchisee would operate with an 18% margin while the company would retain around 30% of revenues. As per reports, the franchise route will help bring down company's establishment costs by around 50%.

Besides this, the company will use its its existing retail outlets to launch specialty restaurants and fast food joints, and will also sell liquor at a few stores, apart from launching laundry services.Vishal is also re-jigging its store portfolio across the country by relocating under-performing stores, and resizing around 25 stores.

Vishal Retail's net profit rose 22.80% to Rs 18.09 crore on a 101.20% surge in sales to Rs 775.03 crore in the half year ended September 2008 over the half year ended September 2007.Vishal Retail sells ready-made apparels (including its own brands) and a wide range of household merchandise and other consumer goods such as footwear, toys, watches, toiletries, grocery items, sports items, crockery, gift and novelties.