Buy Future Retail; target of Rs 628: Edelweiss

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26 Aug, 2025 12:21

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Edelweiss' research report on Future Retail

Future Retail (FRL) today unveiled Vision 2047: Tathastu. The Future Group’s target now is to become a USD1tn company by 2047 by blending online and offline retail to provide seamless experience to consumers. Its strategy  is to address the issue of high logistics cost and prohibitive acquisition cost in e-commerce via proximity of physical stores to customers (within 2km radius) and loyalty programmes (10% discount on all products). The company has tied up with best technology provider in the world (google and Facebook) to leverage consumer data to enhance customer experiences. FRL remains among our top picks in the retail space. Maintain ‘BUY’.

Outlook
On sustained strong SSSG, improving margins and better inventory turns, we estimate ~742bps jump in RoE to 24.1% over FY17-19. We maintain ‘BUY/SO’ with TP of INR628 (30x FY19E EV/EBIDTA). At CMP, the stock trades at 24.6x FY19E EV/EBITDA.
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