Company Profile:
Future
Consumer Ltd (FCL) is a Kishor Biyani (Big Bazaar fame) company. The company is procuring
products from the farmers and villages, sorting it, cleaning it, grading it and
packing it and selling through their network. It is a food & FMCG company, which is engaged in
branding, marketing, sourcing, manufacturing and distribution of fast moving
consumer goods, food and processed food products through retail chain Big
Bazaar, Easy Day and Nilgiris.
It has a large number of 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. (For know all product details, please read
annual report of the FCL)
Company Financials: (Annual, Rs. In Crores)
Particulars
|
Mar 2015
|
Mar 2016
|
Mar 2017
|
Sales
|
1,082.55
|
1,343.80
|
1645.00
|
Operating Profit
|
-67.71
|
-5.03
|
27.75
|
OPM
|
-6.25%
|
-0.37%
|
1.69%
|
Interest
|
29.87
|
52.37
|
37.00
|
Net Profit
|
-93.75
|
-63.55
|
7.78
|
(Quarterly, Rs. In
Crores)
Particulars
|
Mar 2016
|
June 2016
|
Sep 2016
|
Dec 2016
|
Mar 2017
|
Sales
|
320.49
|
357.27
|
438.63
|
434.13
|
414.97
|
Operating Profit
|
1.85
|
5.51
|
6.43
|
6.30
|
9.51
|
OPM
|
0.58%
|
1.54%
|
1.47%
|
1.45%
|
2.29%
|
Interest
|
20.96
|
11.58
|
8.73
|
9.25
|
7.44
|
Net Profit
|
-15.08
|
-3.53
|
-0.04
|
1.29
|
10.06
|
Above said results are on
standalone basis. On consolidate basis sales are higher and company is in loss
but loss is reducing trend.
Ten Reasons for Buy FCL:
1. Company
performance is improving on quarterly and yearly basis. Now it is on breakeven
point. From here any rise in sales will result increase in profit of the
company.
2. Company
is growing @25% - 30%. Now company is planning to sell its products through
other retail stores in addition to own stores. This will give a big boost to
sales.
3. Company
is launching various new brands in new product segments. A large number of
brands and presence in various product segments will help to capture a bigger
market share.
4. Company
may also enter in e-retailing through internet and app. It will also help to increase
the sales of the company.
5. Company
is reducing debt on year to year. In next 3-4 years, it is planning to be debt free
company.
6. In
addition to own manufacturing facility, it is procuring goods from contract
manufacturers. It results low liability of investment in plant and machinery and
deprecation to the company.
7. Promoters
are having clean record and first mover in organised retail chain.
8. Company
own various properties which actual current market value is more than value
shown in Balance Sheet.
9. Promoters
are increasing their shareholding. It shows their faith in the company. In last
FY they have increased 4% stake in the company.
10. Investor Porinju Veliyath who is known for inventing multibaggers, is bullish on FCL and
his investment company, Equity intelligence India holds 12% share in the
FCL.
Disclaimer: This
Blog, its owner, creator & contributor is neither a research analyst nor an
Investment Adviser and this re-presentation is based on information available
on various websites on internet. He is not responsible for any loss arising out
of any information, post or opinion appearing on this blog. Investors are
advised to do own due diligence and/or consult financial consultant before
acting on any such information.
