Motilal Oswa is bullish on Future Retail has recommended buy rating on the stock with a target price of Rs 550 in its research report dated August 01, 2019.
Motilal Oswal 's research report on Future Retail
FRL reported revenue growth of 14% YoY (in-line) to INR52.3b in 1QFY20. EBITDA grew 20% YoY to INR2.7b on a pre-Ind-AS 116 basis (reported EBITDA at INR6.3b), with margin improving 30bp YoY to 5.1% led by healthy SSSG of 8.3% YoY. PAT (pre-Ind-AS) grew 11% YoY to INR1.7b (reported growth of +6% YoY, implying an impact of INR75m from the accounting change).
We ascribe 9x EV/EBITDA on FY21E basis (post Ind-AS 116 adjustment), arriving at a target price of INR550 (unchanged). Maintain Buy.
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