Recommendations For Cuan's Share Menu During Ramadan, Monitoring ERAA To MAPI

JAKARTA - Ramadan and Eid is a good momentum for shopping. This brings positive correlations to the stock market as well.

According to Vice President Marketing, Strategy and Planning Kiwoom Sekuritas Oktavianus Audi, high consumption makes demand in the retail sector quite good. This, he continued, was reflected in the performance of retail issuers in the first quarter of 2024, which showed a significant increase in net profit ahead of Eid.

For example, such as PT Matahari Department Store Tbk's (LPPF) net profit skyrocketing 222 percent (yoy), PT Ramayana Lestari Sentosa Tbk (RALS) increasing 254 percent (yoy), PT Erajaya Swasembada Tbk (ERAA) increasing 14.8 percent (yoy), and PT Mitra Adiperkasa Tbk (MAPI) up 0.9 percent (yoy).

"The promo program from issuers managed to absorb higher consumption in the middle of Eid," he told VOI, Friday, March 7.

However, Audi said there were several challenges to watch out for, such as fluctuations in the value of the Rupiah against the US dollar due to uncertainty in the trade war.

Furthermore, the pressure on purchasing power seen with deflation was 0.09 percent (yoy) in February 2025, which is in contrast to inflation's growth in the previous year.

Audi said this raised concerns if the economic pressure continued into Ramadan.

"The government's policy and incentive programs that have a direct impact on the community, we are of the view that if it is still well maintained, it will boost purchasing power," he said.

In addition, Audi assesses that currently investors can still make purchase accumulations, especially for issuers who have positive performance and a margin of safety that is quite large from the intrinsic value.

However, in the long term, Audi conveyed the importance of conducting further evaluations, especially if purchasing power starts to strengthen, the value of the Rupiah returns to normal, and interest rates are cut according to market expectations.

"We believe the retail sector can revive," he added.

Audi recommends trading buys for ERAA shares with a target price of Rp470, MAPI shares are recommended to buy with a target price of Rp1,580, and recommends trading buys for LPPF shares with a target price of Rp1,710.