PADINI – Fundamental Analysis (28 Nov 2014)

PADINI Analysis:-

Excel – http://1drv.ms/1Fzk2Dt

My View:-

– Fair value
  – Absolute EY%:
    – Trailing:
      – FY14 (EPS: 0.138) – Fair value 1.84 (Fair Value Uncertainty: HIGH)
      – R4Q (EPS: 0.125) – Fair value 1.67 (Fair Value Uncertainty: HIGH)
    – Forward:
      – FY15 (EPS: 0.152) – Fair value 2.03 (Fair Value Uncertainty: MEDIUM)
      – FY16 (EPS: 0.169) – Fair value 2.25 (Fair Value Uncertainty: MEDIUM)
    – EPS applied to reach the current stock price (1.7): 0.128
– In my opinion, at 1.70, I think PADINI valuation is attractive due to
i) attractive dividend yield of 8%
ii) commendable top line growth backed by aggressive expansion
iii) BO stores targeting the value-for-money segment which will do well in current economic environment
iv) highly experienced management team with a strong local retail market knowledge
– PADINI regained syariah compliant. http://www.theedgemarkets.com/en/node/172093
– For recent sector analysis, please read https://lcchong.files.wordpress.com/2014/03/apparels-the-busy-weekly-15032014.pdf

Latest Financial – Q1 2015 Financial Report (26 Nov 2014) http://www.bursamalaysia.com/market/listed-companies/company-announcements/1806789

At the time of writing, I owned shares of PADINI.

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6 thoughts on “PADINI – Fundamental Analysis (28 Nov 2014)

  1. Hi Lcchong, would love to hear your views on current padini share price. Got beaten down quite significantly. Good time to pick up?

    Like

  2. Hi lcchong,

    it is interesting that you consider quite highly about Padini, i have not really looked into the fundamentals in details but just based on observations whenever i go shopping, :), their stores don’t have much customers.

    Like

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