Motilal Oswal - Future Consumer (FCONSUMER) MOSL: FUTURE CONSUMER (Buy)-Deflation in pulses affects growth marginally

Report

Motilal Oswal

EUR 120.00 For Business Accounts Only

MOSL: FUTURE CONSUMER (Buy)-Deflation in pulses affects growth marginally

Future Consumer: Deflation in pulses affects growth marginally; Expect pace of gross margin expansion to pick up in FY20

(FCON IN, Mkt Cap USD1.1b, CMP INR43, TP INR56, 31% Upside, Buy)

net sales grew 26.3% YoY to INR9.9b (our estimate: INR10.2b) in 3QFY19. EBITDA rose 64% YoY to INR272m (our estimate: INR265m). The company incurred an adj. loss of INR53m v/s INR47m in 3QFY18.
Segmental: Centre of Plate portfolio (51% of sales) grew by 13% YoY, with volumes up 25% YoY. Deflationary environment in the pulses portfolio is expected to have impacted realization in the segment. Fruits & Vegetable portfolio (23% of sales) grew by 57% YoY. Processed foods (15% of sales) and Home & Personal care (7% of sales) portfolios grew by 28% and 27%, respectively.
gross margin shrank 80bp YoY to 12.8% (our estimate: 13.3%), while the standalone business gross margin expanded 80bp YoY to 13.4%. Decrease in other expenses (-60bp YoY) and lower staff cost (-90bp YoY) led to EBITDA margin expansion of 60bp YoY to 2.7% (our estimate: 2.6%). Standalone business EBITDA margin expanded 130bp YoY to 3.6%.
9MFY19 consol. performance: Sales and EBITDA grew 29.3% and 90%, respectively. EBITDA margin expanded 80bp YoY to 2.5%.

07/02/2019 8 EN

Underlying

Future Consumer

Future Consumer Ltd, formerly Future Consumer Enterprise Ltd, is a holding company. It is a food company, which is engaged in branding, marketing, sourcing, manufacturing and distribution of fast moving consumer goods, food and processed food products. It also has agri-sourcing operations in India. Its product portfolio includes product categories, such as basic foods, ready to eat meals, snacks, frozen and processed food products, beverages, personal care and home care under its own portfolio of brands. It has also commenced its operations for marketing and distribution of oats and oats-based cereal products in India through its subsidiary company at Sri Lanka. It offers food and spice products under the brands, Fresh & Pure, Golden Harvest, Sangi's Kitchen and Karmiq; snacks and beverages under Tasty Treat and Sunkist brands; home care products under Clean Mate and Pratha brands, and personal hygiene care products under brands, such as Care Mate, Sach, Swiss Tempelle and Think Skin.

See profile

INE220J01025 National Stock Exchange of India India

Provider

Motilal Oswal

Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.

Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.

See profile

Other Reports on these Companies

Motilal Oswal

MOSL: FUTURE CONSUMER (Buy)-Operating results in line-Gross margin expansion to pick up in FY20

Future Consumer: Operating results in line; Gross margin expansion to pick up in FY20 (FCON IN, Mkt Cap USD1.2b, CMP INR42, TP INR57, 35% Upside, Buy) 4QFY19 net sales grew 27.9% YoY to INR10.4b (our est. INR10.2b). EBITDA was up 73.7% YoY to INR287m (our est. INR288m). Adj. Loss for the quarter stood at INR103m (our est. loss of INR41m). Consolidated gross margin declined (-80bp YoY to 12.7% v/s our est. 12.9%). EBITDA margin expanded 70bp YoY to 2.8% (our est. 2.8%). During the year, the holding company reassessed the deferred tax asset on unutilized tax losses based on probabilit...

EUR 120.00

May 23, 2019 May 23, 2019 1 EN

Motilal Oswal

MOSL: FUTURE CONSUMER (Buy)-A miss on sales and margin, expect growth to pick up

Future Consumer: A miss on sales and margin, expect growth to pick up (FCON IN, Mkt Cap USD1.3b, CMP INR47, TP INR69, 48% Upside, Buy) Future Consumer's (FCL) reported net sales grew 26.9% YoY to INR8.4b (est. of INR9.4b) in 1QFY19. EBITDA increased 133.4% YoY to INR201m (est. of INR255m). The company reported a loss of INR61m (est. of a profit of INR74m), which narrowed from a loss of INR102m in 1QFY18. Segmental performance: Centre of Plate portfolio grew by just 19% in 1QFY19. Deflationary environment in Pulses portfolio is expected to have impacted realization. Fruits & Vegetables ...

August 9, 2018 August 9, 2018 8 EN

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality (HOMEFIRS IN, Mkt Cap USD0.9b, CMP INR802, TP INR1025, 28% Upside, Buy) HomeFirst’s 2QFY23 PAT grew 21% YoY/6% QoQ to INR543m (in-line). Credit costs grew 37% QoQ to INR50m (MOFSLe: INR31m). Underlying this, the NII grew 58% YoY to ~INR1b (in-line). ‘Other income’ grew 13% QoQ, driven primarily by higher treasury gains and investment income. Opex was 7% higher than estimated and grew 47% YoY and 14% QoQ, led by investments in new branches and resultant higher employee expenses. Disbursements grew 36%...

EUR 120.00

October 21, 2022 October 21, 2022 12 EN

Aliasgar Shakir

Aliasgar Shakir

MOSL : SHOPPERS STOP: Ticking the right boxes

. SHOPPERS STOP: Ticking the right boxes (SHOP IN, Mkt Cap USD1b, CMP INR780, TP INR805, 3% Upside, Neutral) Aided by price hikes, SHOP reported a healthy 19% revenue growth in 2QFY23 from pre-COVID levels (8% beat) on healthy (+10%) SSSG and sustained volumes. EBITDA grew 2.3x YoY (22% over pre-COVID levels), with a 540bp margin improvement. 1) A strong recovery in revenue, backed by an improved pricing; 2) expansion within the Beauty and Private Label segment; and 3) healthy annual 12/15 store additions for SHOP/Beauty are expected to drive business growth going forward. We expect a r...

EUR 120.00

October 21, 2022 October 21, 2022 13 EN

Tushar Manudhane

Tushar Manudhane

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities (ERIS IN, Mkt Cap USD1.2b, CMP INR708, TP INR860, 21% Upside, Buy) Eris Lifesciences (ERIS) delivered better than expected 2QFY23 performance, led by superior traction in new launches and improved operating leverage. ERIS is notonly sustaining the momentum in its recently launched products, but it is also preparing itself for an aggressive pace of new introductions. We reiterate our earnings estimate for FY23/FY24 and continue to value ERIS at 22x 12M forward earnings to arrive at a price target of INR860. We re...

EUR 120.00

October 21, 2022 October 21, 2022 11 EN

Sign-up for free to access full reports immediately

Email Address*

Choose Password* ( 6 or more characters )

Due to regulatory restrictions regarding the distribution of financial research, this report is restricted to a specific region or investor type. Get access to exclusive reports by answering the questions below.

Select your country*

Get financial insights straight to your inbox

By clicking "register" you accept the Terms and Conditions & Privacy Policy

Already on ResearchPool?

Almost there...

Are you a professional investor?

Select your country

REGISTER

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

In order to access this report please create an account.

LOGIN

MOSL: FUTURE CONSUMER (Buy)-Deflation in pulses affects growth marginally

MOSL: FUTURE CONSUMER (Buy)-Operating results in line-Gross margin expansion to pick up in FY20

MOSL: FUTURE CONSUMER (Buy)-A miss on sales and margin, expect growth to pick up

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

Sign-up for free to access full reports immediately

ResearchPool Subscriptions

Get the most out of your insights

Why subscribe?

How to subscribe

ResearchPool Subscriptions

This report is only available to subscribers

Why subscribe?

How to subscribe