I often wonder why do people pay so much premium price to acquire Adidas or Nike shoes or an Apple iPod. Its just because the brand speaks for itself. People pay a premium to acquire that brand and the companies on the other hand make good money for themselves and their shareholders.
In our firms latest stock recommendations, we stand bullish on the Indian Branded retail Sector. We believe given the size of Indian consumption basket and ever growing middle class the sector offers immense potential for long term investments.
Also given the fact that in the last six-seven months the Nifty index has moved way beyond the real economic activities its time not to go for stocks which everyone is very bullish on cause their valuations are already at extreme levels.
In multi brand retail segment is plagued with problems like inventory management, high debt, and competition. However in the branded retail segment the companies like Provogue, Zodiac, Killer and Koutons have established a niche for themselves in terms of a brand value and is definitely poised to gain out of the changing preference of the Indian middle class.
Please use the link to download our latest report on the same.
http://www.scribd.com/doc/21038240
Happy Investing.
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