 "Pantaloons Fashion zooms over 40% in two-days on merger of Madura Garments")
Shares of Pantaloons Fashion & Retail (PFRL) has surged 19% to Rs 162, extending its previous day’s rally on the BSE, after the Aditya Birla Group announced plan to merge its Aditya Birla Nuvo Ltd (ABNL) operated fashion retailing business into the company.
The stock hit a 52-week high of Rs 163 in intra-day trade today and rallied 43% in past two trading sessions from Rs 114 on April 30. The trading volumes on the counter more than doubled with a combined 743,739 shares changed hands on the BSE and NSE till 1029 hours.
According to the plan, Madura Fashion, the branded apparel retail division of ABNL and Madura Lifestyle, the luxury branded apparel retailing arm of Madura Garments Lifestyle Retail Company (MGLR) will be demerged into Pantaloons Fashions, a listed subsidiary of the group.
After the merger and consolidation, PFRL would be renamed as Aditya Birla Fashion & Retail Ltd (ABFRL) and would include the group’s lifestyle and fashion business.
Sharekhan, the broking firm in a report dated May 4, 2015, said that on the efficiency front, MGLR has witnessed a marked improvement in its operating performance with its operating profit growing at 40.3% compounded annual growth rate (CAGR) over FY2012-14 and margin expanding by 340 basis points (BPS) over the same period from 8.6% in FY2012 to 12% in FY2014.
This spectacular growth was achieved in difficult times, when the discretionary demand was at its lowest and exhibits strong brand salience (its brands are Van Heusen, Louis Phillipe, Peter England, etc) and the company’s cost and inventory management efforts that drove the highest efficiency in the returns. MGLR enjoys the highest return on capital employed (RoCE) in the industry with an RoCE growing from 20% in FY2012 to 65.4% in FY2014, added report.
The stock hit a 52-week high of Rs 163 in intra-day trade today and rallied 43% in past two trading sessions from Rs 114 on April 30. The trading volumes on the counter more than doubled with a combined 743,739 shares changed hands on the BSE and NSE till 1029 hours.
According to the plan, Madura Fashion, the branded apparel retail division of ABNL and Madura Lifestyle, the luxury branded apparel retailing arm of Madura Garments Lifestyle Retail Company (MGLR) will be demerged into Pantaloons Fashions, a listed subsidiary of the group.
After the merger and consolidation, PFRL would be renamed as Aditya Birla Fashion & Retail Ltd (ABFRL) and would include the group’s lifestyle and fashion business.
Sharekhan, the broking firm in a report dated May 4, 2015, said that on the efficiency front, MGLR has witnessed a marked improvement in its operating performance with its operating profit growing at 40.3% compounded annual growth rate (CAGR) over FY2012-14 and margin expanding by 340 basis points (BPS) over the same period from 8.6% in FY2012 to 12% in FY2014.
This spectacular growth was achieved in difficult times, when the discretionary demand was at its lowest and exhibits strong brand salience (its brands are Van Heusen, Louis Phillipe, Peter England, etc) and the company’s cost and inventory management efforts that drove the highest efficiency in the returns. MGLR enjoys the highest return on capital employed (RoCE) in the industry with an RoCE growing from 20% in FY2012 to 65.4% in FY2014, added report.