“Magnit” is the Russian retail company, the main part of which is “shop at home”. In 2012 “Magnit” was in Top 5 worldwide companies by highest capitalization according to the last reporting “Magnit” has a 8349 shops titled “shop at home”, 306 supermarkets and 1086 cosmetics store. Furthermore, “Magnit” planned to open thousand of new “shop at home” and also hundreds of supermarkets in 2016. Unfortunately, management supposed that in 2017 the amount of new shops will decrease. The headquarters placed in Krasnodar. Alexander Barsukov, an executive at the Russian grocery chain Magnit, can see that a hypermarket in Nizhnekamsk, a town of 230,000 people 1,900km (1,200 miles) away, is running low on "Group A" products--ones such as bread and milk that account for 20% of stock but 80% of sales. Mr Barsukov has the store manager notified to restock the shelves; a "control call" will follow up in 40 minutes. The point is to "catch mistakes fast," he says. According to Forbes -Russian retailer “Magnit” becoming the top 100 most innovative companies (23th place, it is the only one Russian company in this list) in the world, ahead such giant as Starbucks, Visa and Adobe.The biggest part of Innovation, which helps to company to be the market leader it is competent strategy.The method of journal is based on the instinct of investors who understand the market participants with innovative models and which will save this innovation in the future. The place in this list depends on the innovation ratio (Market Price – DCF). Company has an innovation ratio = 57.9% (for example the leader in this list is TESLA with innovation ratio = 84.82%). Now let look at the 2 graphs below. The first graph represents the EBITDA/Financial Expenditures ratio. First graph: EBITDA/Financial Expenditures Second graph: Debt/EBITDA According to the information, this ratio fell by one and a half times from 2014 (from 12.9 to 8.0). Despite this fact, that EBITDA in 2015 higher than in 2014 (increase by 33%) this ratio shows us that “Magnit” currently has a really high Financial Expenditures and the reason is that “Magnit” tries to grow. In the long run this ratio together with the high capitalization will help to generate higher revenue. The next graph represents Debt/EBITDA ratio, which quite lower than 1 (Debt actually equal to EBITDA) which is also a really good index. Now let’s try to analyze external factors and will try to find the answer on the question: Why people bought and will buy in “Magnit”? Nowadays Russia has a pile of really harmful economic problems. The one of the most noticeable one is devaluation. Import substitution becoming very common for Russian consumers and manufacturers. Currently it is becoming two times much more expensive to import products from abroad and many manufactures try to produce their own products in order to reduce expenditures.Company produces about 600 their own products. It is easy for Magnit monopolize not only retail market but also become the leader in manufacture market. This graph represents the consumption growth rate and it have been sharply decreasing. . For Russian consumer is becoming much common to consider on cheap products. Products in “Magnit”really cheap, comparing with other and it gives a one more advantage against other retailers. The other retails such as “AzbukaVkusa”, “Perekrestok”, “Bahetle” has a really high damage from devaluation, because the main idea of these retailers is importing products, especially from USA and Europe. These competitors probably could leave this market because of very high costs for products and the small amount of consumers. The business based on imported food does not work in Russia, connecting to the current political and economical situation it is not only unprofitable (because of increasing in cost and decreasing in revenue – number of consumers in this sector sharply decreased from 2014). The really good example of failure of this module is Finland company – “Stockmann” which today sold 100% (5 million dollars) of this shares to Reviva Holdings. I strongly recommended to BUY “Magnit” stocks. All of this information above give us some point of view on this company and most of the bloggers will agree with me, that “Magnit” has a really good management and has a high growth opportunity. However, there are also some prons of the company: There is a high probability of state support. In 2008 “Magnit” was the company which was supported by government; it is clearly obvious to suppose that if it is a crisis the government will prevent “Magnit” from serious damage. “Magnit” pays a really high dividend, which grows ratio is also high. In 2008 dividend from one stock was equal to 1.46 rubles, currently it is above 360 rubles per share. The really small chance of default. The capitalization of the company is really big and the debt/assets ratio is too small for default.The profit of “Magnit” has been growing each year, this years' profit increased by 31.6% (currently 762,7 billion of rubles) There is no currency risk for the firm, the reason is that 100% of company debt in rubles.