Bombay Swadeshi Stores ltd –BSSL [ 531276 ] is not a classic stock { packed with value but underpriced.}

The company was formed by freedom fighter Lokmanya Tilak exactly 100 years back as a stationery retailer .The present management headed by Asim Dalal [ 63% stake ] started the 1^st store in its current format 11  yrs back.

BSSL is a niche retailer [ there is a uniqueness about the products and shopping experience they provide ]and operate under ‘The Bombay Store’ brand. They have 2 stores in Mumbai [ PM Road, Fort & Airport ] , Bangalore [ MG Road] , Pune [ MG Road ] & hyderabad – Banjara hills – franchisee outlet.

They retail Home Accessories [ Artefacts, ethnique lamps & shades, candle & candle stands, table & kitchen ware], Personal Care [ Aroma therapy, Herbal skin & hare care],

Fashion Accessories [ jewellery, leather & travel accessories] , Apparel, Soft furnishings & handmade stationery.

The products are very different from what one finds in any other large store selling similar products & have a traditional Indian / ethnique feel .

Foreigners contribute nearly 35% to the sales. The client profile is premium & average spend high.

The company says that it plans to set up stores in Chennai, Calcutta and plan to have 20 stores [ owned / franchised ] by 2010. The co will need to raise funds to implement this plan.

current equity is 63 lakhs, 06 sales were : 24 cr, OP : 2.4 cr & NP : 34 lakhs.

concerns:

• Mgmt has as of now not been able to scale up operations despite being an early starter [ 95 ]
• Asim’s dalal’s father was one of the brokers named in the Harshad scam.
• the stock is very very illiquid 

What I like about this stock:

• The Opportunity & potential is huge .
• Virtually every 3^rd foreigner who comes to the cities where The Bombay Store is present has it as a ‘must visit & shop’ place.
• The brand pull amongst the high end shoppers is tremendous.
• @ current price of 245 , market cap is 15 cr
• take over by a large operator / fresh funds etc can take the stock into a different orbit. 

welcome comments / view from everyone.

jayendra

I never knew that the Bombay Store through which I pass everyday in Mumbai is a listed company.Daily, when I pass by the store, I use to wonder, who is coming for buying thingsd from this store. I myself have seen very few customers in this shop.Occasionally you see a few foreigners shopping from the shop, as it claims to be one of the oldest shops of Mumbai. I was surprised to see the sales of 24 crores. May be shops at other places must be doing better.

The management seems to lack vision. The store has a great real-estate value. I do not know, whether the property belongs to them. The management can definitely turn this store located in a prime location to many other viable things.

At present when I see the store, I dont find any encouragement  in buying the share. It may be a great investment , but I feel,(like Buffet said), its better to buy a successful company than to go for a company like this at this point of time