Future Consumer rose 12.97% to Rs 57.05 at 11:14 IST on BSE after a domestic brokerage initiated coverage on the stock with a 'Buy' rating and price target of Rs 76.
Meanwhile, the S&P BSE Sensex was up 105.62 points, or 0.31% to 34,023.56.On the BSE, 12.21 lakh shares were traded in the counter so far compared with average daily volumes of 5.29 lakh shares in the past two weeks. The stock had hit a high of Rs 58.35 and a low of Rs 51.70 so far during the day. The stock hit a record high of Rs 79.45 on 27 December 2017.
The stock hit a 52-week low of Rs 27.35 on 28 March 2017.
The brokerage stated in its report that Future Consumer (FCL), an integrated consumer company, is the best play on the huge window of opportunity (presented by a combination of macro factors and company-led initiatives) for brands using modern retail methods of distribution. In addition, FCL appears best placed among Future Group companies from a revenue, profit and RoCE perspective, given the group's focus on retail expansion to drive growth in its burgeoning brands portfolio. Improving mix and operating leverage are expected to drive significant margin expansion over the next five years, the report added.
On a consolidated basis, Future Consumer reported net loss of Rs 4.70 crore in Q3 December 2017 as against net loss of Rs 14.01 crore in Q3 December 2016. Net sales rose 42.15% to Rs 784.05 crore in Q3 December 2017 over Q3 December 2016.
Future Consumer is India's first sourcing-to-supermarket food company by Future Group.
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