Investment Idea -3 Skumars Nationwide Ltd.

SKumars Nationwide Ltd. - The Turnaround Story
Skumar Nationwide stock is recommended for a long term Investment (1 -2 Years)
Current Market Price : Rs. 23

The target price
With its entire expansion and growth plan in place, the company is expected to achieve a targeted FY06 EPS of Rs.4 and FY07 EPS of Rs. 6. With the textile sector in limelight and expected to garner higher valuations, the stock can touch the Rs. 40-50 levels within one year on a conservative basis and Rs.70-80 levels in next two years.
(Please read the disclaimer clause before acting on any recommendations or ideas on this blog)

What makes this stock a good buy?
Skumar nationwide is a turnaround story in making and belongs to the textile sector, which is expected to emerge as an outperformer in the long term.
Skumars boast of brands like Reid & Taylor and Tamarind.
The company has pruned its bottom line with a debt restructuring exercise to take heads-on the vast growth opportunities in its niche areas. The company’s strategy includes operating in all segments of the textile sector.The company has plan to alliance with International brands and make further inroads in the retail business.It also plans to invest Rs. 300 crore over the next five years to give shape to its plans and the money could be raised through privtae placement. The private placement will also help unlock the value for the shareholders