Accumulate Future Retail; target of Rs 410: Yes Securities

Yes Securities' research report on Future Retail

Future Retail Ltd (FRL) is the retailing arm of the Future Group, selling products ranging from food, apparels, appliances to general merchandise through large and small store formats including Big Bazaar (BB), Easyday (ED), Foodhall, Fashion at Big Bazaar (FBB), and ezone.

Outlook

We expect FRL to grow its sales at a CAGR of 49% over FY16 to FY19 led largely by the expansion in number of stores and EBITDA margins to improve from 1.2% in FY16 to 4.3% in FY19. We initiate coverage on FRL with ACCUMULATE and a TP of INR 410.