4X Multibagger Stocks as Value Pick · Store One India · May15

Store One India

Store One India

Value Pick : Summary

I am re-posting this Value Pick here again which was also posted here last year since SORI is now available with phenomenal MoS ( Margin of Safety ).

Also I wanted to correct myself as I posted SORI as retail chain before but is actually a Facility Management company as per its Annual Reports but since their website is outdated & I was unable to find any more info other than their retail chains in Nagpur so I posted the same, again accept my sincere apologies for misplaced info.

About Business :

Store One Retail India Limited primarily provides property and facility management, and equipment hiring services in India.

The company’s Facility Maintenance Services segment offers property and facility management services to buildings and properties, including maintenance and care, and common area development and landscaping, such as and security, pest control, waste disposal, recycling, etc. Its Equipment Hiring Services segment is involved in the rental of plant and machinery in the field of infrastructure development, such as Tower Cranes , boom placers, hoists, transit mixers, dumpers, excavators, etc.; and form-work for construction of building/structures.

The company which is a IndiaBulls Management also engages in provision of wholesale trading; Building Materials and services; and tour and travel services. The company was formerly known as Indiabulls Retail Services Limited and changed its name to Store One Retail India Limited in October 2009. The company was incorporated in 2005 and is based in Gurgaon, India.Store One Retail India Limited is a subsidiary of Indiabulls Wholesale Services Limited.

SWOT Analysis :

Strengths

  • Store One is basically a service provider to IndiaBulls Real Estate which is like doing ghar ka kaam ghar ke undar hi ( if we can do it why to outsource? ) by IndiaBulls Management.
  • No problem with getting business as Store One has yet to consume whole of facility management & property management of IndiaBulls Real Estate.

weaknesses

  • Store One was previously owned by Piramal Group when took over by IndiaBulls had lot of unreported debts which were written off by Store One Later & also they closed all the retail stores & booked huge losses in the books.
  • Store One is still not reporting whole profit it makes just enough to maintain the RoCE & use tax exemptions of previous losses.

opportunities

  • Store One has Multibagger conditions because of the organised player in this unorganised sector.
  • It can take contracts of high ends properties & offices in Delhi & Mumbai as soon as it completely takes over IndiaBull Real estates facility & property management.
  • Being in a unorganized industry margins are huge which is a key potential of Store One.

threats

  • No such threat as it has a huge parent company to provide business on a silver platter.
  • Its management is totally controlling the profit to report & hence the price of the stock.

Business Verdict :

Store One India has lot of business to takeover before it pounces on actual work outside IndiaBulls Real Estate which gives surety of business as Real estate is at its worse but still it is increasing turnover & profits.

With Store One India's promoter itself converted debentures into shares in FY13-14 @ Rs 30, I can safely assume that they see it as floor price and with decent business prospects & stock price below promoters buying himself I see store One India as a Value Pick of India.

Official Website

Quality Analysis
Value Matrix


What are Value Picks ?

Value picks are stocks of companies that are believed to be undervalued at NSE or BSE. It is an outcome of huge sattebaaji directed by Stock brokers in that stock making Markets overreact to good and bad news, resulting in stock price movements that do not correspond with the company's long-term business or fundamentals.

You can learn Value Pick Multibagger Stock course & start your own research in depth. After completing the Value Pick Multibagger Stock course You have to apply methods & circle of competence on your researched Value Picks.

Is Value Pick Tax Free ?

YES, Profit arising from holding Equity shares for 1 Year or more is covered under Long Term Capital Gain ( LTCG) as per Income Tax Act 1961 ( Section 54 )

regards,

jasmeet singh

Founder & Investor

SEBI Registered (Under Process)

Jasmeet Singh

About me :

I am passionate about 3 things in my life Financial System, Fitness & Photography

I got introduced to Financial system through Forex Trading back in 2007 during my 3rd Year of Engineering & It was too complex yet magnificent. Officially I entered Indian Stock Market in early 2008 at the very beginning of Global Financial Crisis, but what the hell did I know for me it was the last semester & time to get serious about my passion ie, Counter Strike

Legends :

RoCE : Return on Capital Employed (Effective)

PAT(Avg.) : Net Profit after tax ( Average )

CMP : Current Market Price

MoS : Margin of Safety

DISCLAIMER

This analysis is my personal opinion shared on public media (Blog) & is not a recommendation of any sort in any manner. I am currently not registered with SEBI in any capacity but in process of being a registered Research Analyst with SEBI. I have no financial interest in aforesaid company & don't hold any stock on the date of writing this post.