Future Retail Ltd.

NSE: FRETAIL | BSE: 540064 | ISIN: INE752P01024 | Industry: Department Stores
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Q2FY18 Result Update - Robust growth continues: BUY

Prabhudas Lilladhar
increased to 4.7% (up 160bps YoY and 20bps QoQ) as operating leverage has reducedcostofretailby70bpsYoY,up40bpsQoQ(salespreGST).Inventoryat79 days (80days in March 2017) and Net debt of Rs9.6bn (Rs9.2bn in March 2017) showssustainabilityofoperations.Weexpectmarginexpansiontosustainledby fullsetoffininputtaxes,efficienciesinsupplychain,operationalimprovementin easydayandEZonerestructuring.WebelieveHypercityacquisitionwillcontribute positivelypostFY18andaccumulatedlossesofRs7.5bnwillprovidetaxshield.We estimate52%PATCAGR(atmarginaltaxrate)overFY1720andvaluethestockat...
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