Time to be bullish on Men's Retail Companies?

Retail, E and Brick & Mortar, has been attracting the investors for last over 1 decade, inspite of dismal financial performance seen of this sector. But recent investment of Rs. 1,500 crore in Aditya Birla Fashion, for 7.8% stake, at Rs. 205 per share, (at a premium of 25% over current market price) by Flipkart, (now a Walmart company) has rekindled the retail investors to look in such stocks.

In the past, broad theme of retail was captured, whether in grocery, jewellery, textiles, lifestyle, mens' womens' or children's items, inner wear, food, fun etc.  but now this theme is seen being narrowed down, with mens' retail seen catching. If Walmart is taking a call on this micro retail vertical (where Amazon is already growing with rapid pace) the future is seen existing for that vertical to grow in India. Mind it, Walmart and Amazon, both are having an outlay of close to US$ 15-US$20 Billion of investment (Rs. 1L to Rs. 1.50L cr) in this sector in India.

Mens' Retail is seen bigger than Womens' and Children's segment, due to volume and wide range of products seen existing in this space. With strong hands seen coming in, with weak hands having flushed out, this micro retail theme is likely to yield good returns to the investors.