Future Consumer slips after brokerage slashes target price

Future Consumer fell 1.16% to Rs 25.50 after a foreign brokerage firm reportedly reduced its target price on the stock to Rs 28 per share from Rs 82 per share.

A foreign brokerage firm reportedly slashed the target price on shares of Future Consumer by 65.85% to Rs 28 per share from Rs 82 per share, while maintaining its 'equal-weight' rating on the company. The EPS estimates were cut due to lower revenue growth, higher interest costs and weaker absorption of fixed costs.

Shares of Future Consumer tanked 16.8% in seven trading sessions to its current market price of Rs 25.50, from a recent closing high of Rs 30.65 on 23 September 2019.

Meanwhile, the S&P BSE Sensex was down 93 points or 0.24% to 38,212.21.

On the BSE, 72,622 shares were traded in the counter so far compared with average daily volumes of 1.30 lakh shares in the past two weeks. The stock hit an intraday high of Rs 26.10 and an intraday low of Rs 23.60 so far during the day.

The stock hit a 52-week high of Rs 52.65 on 14 November 2018. The stock hit a 52-week low of Rs 26.10 on 3 October 2019.

On a consolidated basis, Future Consumer reported net loss of Rs 14.94 crore in Q1 June 2019 compared with net loss of Rs 5.91 crore in Q1 June 2018. Net sales surged 24.7% to Rs 1,048.45 crore in Q1 June 2019 over Q1 June 2018.

Future Consumer is engaged in branding, marketing, sourcing, manufacturing and distribution of fast moving consumer goods, food and processed food products.

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