Budget Analysis: Mauritius route could have hauled Pantaloon stock

 “The correction in Pantaloon stocks could have been probably caused due to selling by Mauritius investors following the apparent target of tax treaties proposed in the union budget “said Rakesh Biyani, Joint MD of Pantaloons.  He stated that P. Chidambaram’s proposal that appeared to be targeting tax treaties could have been the reason for (Mauritius) investors selling stocks. 

Biyani stated that there was no technical problem to this issue as the markets were weak even before the declaration of the same. However he agreed that confusion lingers in relation to the whole Mauritius route. It must be noted that along with other midcaps Pantaloons stocks too has done badly in the past sessions.

The company on the Monday presented its first ever stand- alone quarterly loss. The retail concern recorded a loss of Rs 20.41 crore for the quarter ending December 2012. Pantaloons incurred these losses on account of the provisioning of funds for investment losses in various other businesses.

Speaking about the 2013-14 budget Biyani said that the fundamentals of business remain good and the fiscal plan has certainly provided a boost in general to the apparel industry with the zero excise duty regime.