Future Consumer Ltd. share price target

During the year, the holding company reassessed the deferred tax asset on unutilized tax losses based on probability of future taxable income, and recognized net deferred tax asset of INR186.75m during the quarter. Thus, reported PAT stood at INR78m v/s loss of INR36m in base quarter....

net sales grew 34.6% YoY to INR10.1b (est. EBITDA was up 98.8% YoY to INR254m (est. Adj. Loss for the quarter stood at INR30m v/s loss of INR88m in base quarter (est. 3 November 2018 Centre of Plate (52% of sales) grew 31%. Fruits and Vegetable portfolio (22% of sales) grew 50%. Processed foods (8% of sales) and home and personal care (7% of sales) portfolio grew 31% and 59%, respectively. standalone business gross margins were up 60bp YoY to 13.

EBITDA rose 521% YoY to INR162m (est. Thus, EBITDA margin expanded 150bp YoY to 2% (est. Future Consumer We expect revenue growth momentum to continue, at least for the next few years, given the tremendous growth opportunity. As FCON is likely to be profitable at the consolidated net level only in FY19, we believe near-term P/E multiples are always likely to appear extremely expensive on a one-year forward basis. As FCON is likely to be profitable at the consolidated net level only in FY19, we believe near-term P/E multiples are always likely to appear extremely expensive on a one-year forward basis. Maintain As soon as the company demonstrates profitability at the net level, we will move our valuation to P/E basis. Maintain As soon as the company demonstrates profitability at the net level, we will move our valuation to P/E basis.

Vishal Punmiya- Research Analyst (Vishal.Punmiya@MotilalOswal.com); +91 22 3980 4261 Krishnan Sambamoorthy - Research Analyst (Krishnan.Sambamoorthy@MotilalOswal.com); +91 22 3982 5428 Investors are advised to refer through important disclosures made at the last page of the Research Report....