Fairval

Notes on Indian equities, sectors and economy

A Shining Example of Broking Research

Posted by fairval on January 16, 2009

Check the sharp reduction in target price and earnings estimate by a broking firm for the top 2 retail firms in India – Pantaloon and Shopper’s.

And now for the interesting part.

Lets take Pantaloon.
Old Target Price – Rs 520
New Target Price – Rs 184 (BTW, I have always wondered why dont brokers also put two decimals behind their price estimate. That would be more precise. After min trading tick is 5 paise).
Current market price – Rs 190

In other words, when the price fell from Rs 500 levels of Rs 190, Pantaloon must have been a screaming buy, or what?

Similarly for Shopper’s
Old Target Price – Rs 360
New Target Price – Rs 66
Current market price – Rs 119
(this isnt too bad. There is long way to go to target price yet..)

Does anyone ever beat the index following such crap?

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