Can retail stocks make money in short term

shah's picture

Retail industry is back in business. But can they really make money. May be in short term but if you looking to make serious money I would recommend keeping holding your breath for 4 years. Retail is huge business but organized retail requires experience to make profit.

Pantaloon , shoppers stop and other needs to understand and get themselves into profit making mode.


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Looking at valuation retailer stocks are overexpensive. But don't forget that this is a high growth industry in India.Soft retail prices and low leasing rates is good for retailers.

Trent and pantaloon are good options to if 5 year is investment horizon.

In short term the sector is risky ..

a) high food prices lives low money to spend on other items
b) oil prices have been hitting high again and they could dent the retail growth.
c) competition is high compared to size of organized retail. This sector could go into same mode as telecom because of high competition.

 

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