Morgan Stanley bullish on Future Retail, stock rallies over 2%

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26 Aug, 2025 12:21

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Future Retail share price gained more than 2 percent on January 7 after brokerage house Morgan Stanley retained its bullish view on the stock, which closed at Rs 344.85, up Rs 8.80, or 2.62 percent, on the BSE.

"Amazon India will become authorised online sales channel for Future Retail stores. Hence it’s a win-win arrangement arising from a hybrid retail model as this will help build on the offline and online capabilities of both the entities," the research firm said.

Amazon and Future group companies have entered into long-term business agreements to expand reach of FRL stores and consumer brands through the American e-commerce giant’s platform.

The company's store productivity will improve with better utilisation of its assets and will help increase share of sales originating outside Future Group network, the brokerage said.

Morgan Stanley has an overweight rating on the stock with a target price of Rs 540, implying 60.7 percent potential upside from current levels.

FRL will also list on the Amazon Prime Now program, allowing customers to get food, grocery and general merchandise delivered within two hours in Delhi, Mumbai, Bengaluru, and Hyderabad. FRL will also list stores such as Big Bazaar and Food Hall in more cities on the Amazon India marketplace.

"The agreement focuses on the grocery and general merchandise categories as well as the fashion and footwear categories," Morgan Stanley said. Both entities, it said, would work towards driving sales, achieving operational efficiencies and collaborating on technical excellence.

Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.