India's Future Lifestyle Fashions rises; CLSA initiates with 'buy'

Future Lifestyle Fashions

10/04/2018 06:40

** Apparel & accessories retailer Future Lifestyle Fashions
Ltd  FLFL.NS  climbs as much as 6.7 pct to 451.50 rupees
    ** Brokerage CLSA initiates coverage with "buy" rating and
PT of 535 rupees
    ** Says expects 22 pct EBITDA CAGR in FY18-21, driven by
robust network addition, particularly in "Brand Factory"
outlets, and operating leverage benefits - CLSA
    ** Brand Factory, a discounting platform for old and
stagnant inventory, does not face competition from offline
players - CLSA
    ** Adds stake sale in "investee" brands, such as Celio in
which co has invested, could create value
    ** Says expects adjusted debt-equity to fall below 0.7x and
reported net debt to equity to reduce further to 0.4x by FY20
    ** Stock had risen 22.4 pct this year as of Monday's close
after gaining nearly 170 pct last year
    ** All seven brokerages covering the stock rate it "buy" or
higher; median price target 482.50 rupees - Thomson Reuters
Eikon

 ((Reuters Messaging:
krishna.vkurup.thomsonreuters.com@reuters.net))