May 22, 2018 09:36 AM IST | Source: Moneycontrol.com

Future Retail dips nearly 7% on posting net loss in Q4; HSBC maintains buy

HSBC has maintained buy rating on Future Retail with a target of Rs 700 per share.

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Shares of Future Retail declined nearly 7 percent in the opening trade on Tuesday on the back of weak set of numbers reported by the company in the quarter ended March 2018.

The company has reported net loss at Rs 463.6 crore in the quarter ended March 2018 against profit of Rs 123 crore in the same quarter last year.

The net loss of Rs 463.6 crore includes non-cash exceptional loss of Rs 604 crore post demerger of retail business undertaking of Hypercity Retail

Revenue of the company increased to Rs 4,574.65 crore from Rs 4,383.84 crore.

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The operating profit or EBITDA was up at Rs 201.9 crore and margin was at 4.4 percent.

Brokerage: Jefferies | Rating: Hold | Target: Rs 550

Jefferiesc has maintained hold rating on Future Retail with a target of Rs 550.

Same-store sales growth focus on food business, raise share of Easy Day & Hypercity integration, it added.

Brokerage: HSBC | Rating: Buy | Target: Rs 700

HSBC has maintained buy rating on Future Retail with a target of Rs 700 per share.

The Reserach house cut target price to Rs 700 from Rs 730 share. The Q4 revenue was a miss on lighter SSSG, it added.

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At 09:17 hrs Future Retail was quoting at Rs 496.50, down Rs 31.80, or 6.02 percent on the BSE.

Posted by Rakesh Patil