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IIFL assigns Rs 300/share as fair value for Spencers Retail, Rs 1,000-1,100/share for CESC Ventures

Updated : January 25, 2019 12:36 PM IST

India Infoline Finance (IIFL) on Friday assigned Rs 300 per share as fair value for Spencers Retail and Rs 1,000-1,100 per share for CESC Ventures.

In an interview to CNBC-TV18, Harshvardhan Dole, vice president-institutional equities, congratulated the management for a clean and neat demerger,

Spencers Retail and CESC Ventures, carved out of R P Sanjiv Goenka Group's flagship CESC Ltd, got listed on Friday in both the bourses NSE and BSE.

According to Dole, the house has assigned 1X EV to sales valuation to Spencers Retail, which implies a fair value closer to Rs 2,400-2,500 in terms of market capitalisation. The per share value would be around Rs 300.

"CESC Ventures holds one of the fastest growing FMCG businesses that owns 'Too Yumm' brand and is likely to be a Rs 1,000 crore brand by 2020, which is not reflected in current valuations," Dole said.

The house has assigned 2X EV to sales to the FMCG business and the fair value should be in Rs 1,000-1,100 per share. CESC Ltd remains a top pick within the space and is worth Rs 900 per share, he added.
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