MOSL: SPENCERS RETAIL (Buy)-Balancing growth versus profitability

Spencers Retail: Balancing growth versus profitability (SPENCER IN, Mkt Cap USD0.2b, CMP INR133, TP INR175, 32% Upside, Buy)   Turns profitable: revenue grew 4% YoY to INR5,235m (11% miss). Gross margin expanded 210bp YoY to 21%. EBITDA came in at INR17m (v/s a loss of INR47m in 4QFY18); margin at 0.3% v/s -0.9% in 4QFY18. This, coupled with a steep 137% YoY surge in other income, resulted in PAT of INR18m (v/s a loss of INR89m in 4QFY18). For FY19, revenue grew 6%, while EBITDA/PAT stood a...