Buy retail stocks only on dips: JV Capital Services

ET Now talks to Ashit Suri, Fundamental Research Analyst, JV Capital Services (Fundamental Check) on retail stocks.

Have you looked at Vishal Retail? The restructuring is on but it is up 5% today. For somebody who is probably a short-term trader, could he look at Vishal Retail?

I have not been following Vishal Retail as such. The retail space has been doing well on every parameter right from footfalls. I mean the business levels and profit margins, operating margins, everything has been very positive but most of these companies from Pantaloon to a Shoppers Stop, at this point of time, they are pretty fairly valued, so from the trading point, I do not see too much of gain happening in any of these counters unless there is some specific news flow coming in.

Koutons Retail is one player, which is a smaller player, but having an attractive valuation and at this level of the market, one can still accumulate it. For the larger players, I would suggest that one can buy only on dips and that too on an accumulation basis. Right now I would not give a call for traders to get into the space.