Future Consumer surges 15% on heavy volumes

The stock surged 15% to Rs 67.50 on the BSE in early morning trade after the media report suggested that Morgan Stanley initiated coverage of the stock with overweight rating

Future Consumer surged 15% to Rs 67.50 on the BSE in early morning trade on back of heavy volumes after the media report suggested that Morgan Stanley initiated coverage of the stock with overweight rating. The foreign brokerage house predicted the one year target price of the stock price at Rs 95 per share.

At 09:39 AM the stock was trading 12% higher at Rs 65.75 as compared to 0.48% rise in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 11.97 million shares changed hands on the NSE and BSE so far.

“Future Consumer is poised to grow revenue at 40-45% per annum during the next 2-3 years. Additionally, the company targets an EBIDTA margin expansion of 150bps per annum during the next 3 years. This is expected to be driven by expansion in gross margins (led by richer product mix), improvement in efficiencies and operating leverage. Future Consumer has been consistently reducing losses and has recorded profitability at the EBIDTA level in FY17. The management targets to achieve profit at the net profit level by 4QFY18,” analyst at Antique Stock Broking had said in recent report on management meet update.