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Shares of Future Retail declined to over 2-month low on Q4 loss. The stock plunged as much as 6.9 per cent to Rs 491.25, its lowest since March 9.
The company, which owns hypermarket stores like “Big Bazaar” and fashion retail stores “fbb”, has posted March-quarter loss of Rs 464 crore ($68.26 million), compared with a profit of Rs 123 crore a year earlier.
Future Retail saw exceptional charge of Rs 604 crore due to the demerger of retail business undertaking of Hypercity Retail (India).
HSBC has cut the price target to Rs 700 from Rs 730 and has kept “buy” rating, while Jefferies has cut the price target to Rs 550 from Rs 560 with a “hold” rating.
The company’s new value retailing approach through “Everyday lowest prices” has been a success and should augment same-store sales growth (SSSG) from next quarter, says HSBC.
Jefferies says it continues to believe that right to win remains at the large box format and the management's target to break even in “Easy Day” during FY19 will be a tough task given strong expansion plans.
Future Retail's stock was down for a fourth straight session; it has posted biggest intraday pct fall in nearly three weeks. Over 886,000 shares changed hands, compared with 30-day average of 659,500.
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