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Pantaloon Wants To Exit Future Capital


Pantaloon Retail wants to exit Future Capital Holdings, says ET.  (HT @moneybloke)

The stock has come a long way from it’s IPO in 2008 January, for Rs. 765 per share. It went to a high of over 1,000 before the markets gave way and the stock fell. It’s at Rs. 146 today, with just Rs. 3 worth of dividends coming our way in these years.

FCH Chart

The company made Rs. 7.63 in EPS versus Rs. 9.25 last year, with about 6.5 cr. shares. I don’t know what anyone was thinking when they paid Rs. 1000 for this share, in fact paying 20 times earnings seems ridiculously high at the current market price of Rs. 146.

Either ways, the company has the standard Pantaloon Retail strategy of demerging and merging companies constantly, which is highly irritating. Plus they have this:

The company’s exposure to real estate is around Rs 800 crore and retail assets account for 30% of the loans.

The current market cap of the company is about 900 cr. which should be nice for Pantaloon Retail to have, if they manage to sell their 54%. There are a lot of polished suckers in the world.


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