Investors could use dips to buy expensive retail stocks, say analysts

The penetration of organised retailers in the jewellery and watches segment rose to 28 per cent in 2017, from just 6 per cent in 2007 and the count is estimated to reach to around 35 per cent by 2021

The share price of many retailers, and across categories such as apparel, footwear, jewellery, grocery, etc, have gained significantly in the recent past, with some also near their all-time highs. While a part of this is due to corporate tax rate cuts announced recently, it is also due to the government’s efforts to boost economic activity, companies’ initiatives/potential to expand and grow fast, and better use of capital. Although some of the factors such as market penetration may play out over time, there is little doubt that the organised retailers seem to be in a sweet spot, given their long-term