Osim

Osim: IIFL initiates at Buy with $1.80 target, which implies 21.3x, 17x FY11, 12E P/E. Says Asia’s leading specialty retailer of “healthy lifestyle” products is poised for 45% profit CAGR over FY09-12, driven by i) realignment of management focus towards profitable products and markets; ii) addition of 75 new OSIM stores and 85 new Richlife stores each year in China between FY10-12; and iii) over 400bps EBITDA and net profit margin expansion driven by cost efficiencies and lower taxes...

Cites upside risk to valuations from revival and relisting of the Brookstone business (now entirely written off).