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Emerging companies - Mid caps that can become large cap
 The Equity Desk Forum :Investment Ideas - Creating winning portfolios! :Emerging companies - Mid caps that can become large cap
Message Icon Topic: Trent - Trending into high growth. Post Reply Post New Topic
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kattur
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Quote kattur Replybullet Posted: 01/Oct/2006 at 11:29pm
Mr. Basant, I just bought something from a shop that belongs to a rival of Vivek's in retail electronics business.  The person who delivered it told me that they have a publication for the benefit of the electronic business community - and this was written in the latest issue.  He thinks Vivek's is going out of business and he is excited about it.  When I probed him, he said the Tatas are buying them out.  This was as of yesterday.  I can try and ask him to get me this publication when he comes again on Wednesday.  It is a fact Viveks were on the look out for partners in their business - they even thought of going solo and public.  But I guess it did not work out that way.  This was ofcourse written about in a business magazine about two years ago.  Now with the retail boom, I am not surprised at the Tata's move.  Viveks has a strong presence in many of the bigger towns in TN besides more than half a dozen showrooms in Chennai and may be even a few in neighbouring States.  MTR, by the way, is also on the look out for strategic partners.  I wouldn't be surprised if ITC buys them out and clubs their Kitchens of India brand and wipe out a serious competition.
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Quote basant Replybullet Posted: 01/Oct/2006 at 11:34pm
Thank you so much. Please see if you could update us with that news. The benefit with owing a large consumer durable store is that suddenly Trent could bargain with Videocon for TV prices etc if they set their own outlets it takes time to reach that scale hence the bargaining takes time. Vivek was looking for an IPo I also remember reading it but this could be block buster for TRent - buying out a distressed business and then creating synergies - If that happens!
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Quote basant Replybullet Posted: 10/Oct/2006 at 9:32am
Trent announced a Rights issue in the ratio of 1 share for 5 held at a premium of Rs 490 per share. This will be preceeded by a preferential issue of shares and warrants to the promoters.
 
My sense is that the company should be able to raise about Rs 300 crores through this exercise. What it needs to do is increase its RoE which is tottering at below 15%.Such abysmally low RoE's tend to make high PE's unsustainable
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Quote Ajith Replybullet Posted: 11/Oct/2006 at 2:27pm
It will be interesting to see if there is any purchasing power increase which gets reflected in sales in the coming quarters.
Competitive forces are also at play.In Kochi,Lulu(Indian-owned and very popular in the Gulf) is putting up a huge hypermarket and they are planning to expand into Bangalore , Chennai, and Hyderabad.
I read recently that in Britain, Asda(a Wal mart company)has been losing out to Tesco and Sainsbury as it catered to  the less premium segment of the market and is finding it difficult to adapt to changing consumer expectations.


Edited by Ajith - 11/Oct/2006 at 4:31pm
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akash
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Quote akash Replybullet Posted: 24/Oct/2006 at 3:33pm
Can anyone provide me the nse and bse code for Trent warrants?
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Quote basant Replybullet Posted: 24/Oct/2006 at 6:50pm
At the NSe it is traded under series "W1" for the scripname TRENT.
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Quote akash Replybullet Posted: 28/Oct/2006 at 8:58pm
Basantji,
 
Could you plz tell that the new Retail stores called Croma recently started by Tata's in Mumbai are runned by Trent or Tata Sons. If by Trent what could be possible upside in sales growth and profit margin in coming quarters.
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Quote akash Replybullet Posted: 28/Oct/2006 at 9:04pm
Also if you could provide more information about Trent warrants. My friend told me that Trent warrants are traded at two different prices of BSE one at 300 and other at 450 possible. Is it possible? I am not able to find the codes for that but he tried this online on his sharekhan terminal. So,if you have any info it would be quite handy.
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