Future Consumer Limited is a fast moving consumer goods (FMCG) company that is a part of the Future Group. It primarily sources its products for supermarket chains across the country.Market Capitalisation
The market capitalisation of Future Consumer Limited, as of August 10, 2018, was a little over Rs.9,100 crore.
Company’s Wealth and Recent Performance
- For the quarter ended on June 30, 2018, Future Consumer Limited reported its standalone revenue to be at Rs.664.87 crore. This marks an improvement of over Rs.100 crore in the revenue figure reported for the June quarter of the previous fiscal year.
- The standalone expenses for the period were considerably high, amounting to roughly Rs.653.98 crore at the end of the June quarter. Consequently, the net profit after tax for the period stood at Rs.10.88 crore - a mere increase of Rs.4 crore with respect to the same period last year.
- The standalone earnings per share for the quarter were reported to be at Rs.0.06.
- Considering the consolidated performance of Future Consumer Limited, its total income, as of June 30, 2018, has been reported to be at Rs.848.88 crore - an increase of roughly 20% over the figure reported for the Q1 FY18.
- However, the profitability of the company suffered in the June quarter. Its consolidated operations reported a loss of Rs.6 crore for the period, as against a loss of Rs.10 crore stated for the same quarter of the previous year.
- Considering the balance sheet of the company, for the Q1 FY19, the net assets of Future Consumer Limited are worth Rs.1,627.1 crore. As for the net debt, it is placed at Rs.634.2 crore.
Future Consumer Limited Stock Trends in 2018
- At the start of 2018, the stock price of Future Consumer Limited was around Rs.75. The scrip commenced the month trading at Rs.76.40 and over the course of January, the share price declined gradually. The Future Consumer Limited stocks lost more than 10% in the month, with the closing price on January 31, 2018 being Rs.63.20.
- The month of February was a rocky one for the investors. The stock price of Future Consumer Limited rose by 5% in the first week, only to follow it another bearish trend. The uncertainties in the international markets did little to boost investors’ confidence as the shares ended the month of February at Rs.59.80.
- A similar trend was seen in the month of March as well. The shares dropped a little over 5% in the month to close at Rs.54.80 on March 28, 2018. The month of April proved to be a joyous one for the investors. The shares staged a decent recovery and they moved up to reach their previous levels close to Rs.60.
- However, over the course of the next few months, the Future Consumer Limited shares were highly bearish. The month of May wasn’t an eventful one for the investors as the scrip neither made any substantial gains, nor any losses.
- In mid-June, the shares took a tumble and the stock price of Future Consumer Limited lost more than 15% in a month’s time. In mid-July, the shares were seen trading hands at levels close to Rs.42. The shares recovered slightly in the final week of July to end the month at Rs.47.90.
Future Consumer Limited Stock Trends in 2016 and 2017
- At the start of 2016, the Future Consumer Limited stock price was varying at levels around Rs.25. Interestingly enough, over the course of the year, the share price remained at those levels without as much as crossing the Rs.30 mark. The scrip dropped slightly in January to descend into the Rs.20 territory. Through most of February and March, the share price varied at levels varying from Rs.20 - Rs.21.60.
- In April, the share price moved up cautiously by around 10% to cross the Rs.22 mark. This steady, gradual increase in the stock price was followed by an equally gradual decline over the course of May. In fact, by early June, the Future Consumer Limited shares were back to their previous levels at Rs.20.
- However, over the course of June, the investors saw the shares make an excellent run, gaining as much as 20% by the end of the month. In early July, the shares were trading at levels around Rs.24, but eventually moved on to shed those gains by the end of the month. Things remained fairly stagnant over the course of August, with the scrip trading at levels close to Rs.22.
- The stock continued to exhibit its mundane behaviour in the final few months of the year as well. Through September and October, the share price varied from Rs.19 - Rs.22, and same was the case in the months of November and December. Demonetisation didn’t affect the prices greatly and the closing price at the end of the year was Rs.19.75.
- 2017 proved to be a bountiful year for the investors. The scrip started the year at levels around Rs.20. By early February, the scrip had gained 30% to cross the Rs.26 mark. The Future Consumer Limited shares continued to be bullish through March as well, with the stock price eventually hitting the Rs.30 mark.
- In early April, the shares were trading at levels around Rs.30. In the first week, the scrip gained roughly 10% and touched the Rs.34 mark. Thereafter, the share price stabilised at those levels and as a result, the stocks were fairly stagnant through the course of May and June.
- In July, the stocks commenced a meteoric bull run that witnessed the shares double their gains in two months. In early July, the stock price of Future Consumer Limited was Rs.30. By early September, the same shares were being traded at levels above Rs.64. The prices were quite volatile in the final quarter of the year but they managed to retain their bearings at levels above Rs.58.
- In December, the share price spiked once again and this time, the stocks hit their 52-week high at Rs.79.10. The closing price at the end of the year was Rs.75.30.
Should you invest in Future Consumer Limited stocks?
- Future Consumer Limited is an FMCG company which serves as a sourcing entity for various supermarket chains across the country. Considering its financial performance, the company reported a consolidated loss of Rs.6 crore for the June quarter of the present fiscal year. Even though the company reported its net income to be substantially higher than the same quarter of the previous year, its gains were offset by a significant increase in its expenditure.
- Considering the performance of the stock itself, the scrip moved up in 2017 to deliver handsome returns - almost 400% between January and December. However, since the start of 2018, the scrip has been highly bearish and is on the course to steadily shed those gains. Interestingly enough, Future Consumer Limited scrip is among the many other stocks which have been highly bearish this year. It is also worth mentioning that the company hasn’t given any dividends in the stock’s history.
- The competition in the FMCG sector is fairly high but the company’s business model is quite unique. Given that the stock price is on a down run, it serves as an attractive opportunity for many to accumulate the shares of the company. However, before investing in this scrip, it is strongly recommended to do your own research.
Future Consumer Limited is a fast moving consumer goods (FMCG) company which primarily serves as a sourcing entity for supermarkets in India. It is one of the largest sourcing-to-supermarkets FMCG company in the country. It has a diversified portfolio of products and is constantly expanding it to cater to the demands of the Indian market. Presently, it supplies its products to various categories like ready-to-eat meals, basic foods, personal and hygiene care, home care, and beverages. Apart from this, it has also set up India Food Park in partnership with the Ministry of Food Processing Industries, Government of India. The idea behind this is to have the Food Park serve as a one-stop destination for end-to-end food processing, that is, all the way from the farm to the markets.
History of the Company
The roots of the company can be traced back to the year 1996, when the company was originally was incorporated as Subhikshith Finance & Investments Limited. In July 2007, Pantaloon Future Ventures Limited - the completely owned subsidiary of Pantaloon Retail India Limited, acquired 100% of the total issued equity shares. The company then changed its name to Future Ventures India Private Limited. It commenced its operations by purchasing securities of various apparel companies like Biba Apparels Private Limited, Footmart Retail India Limited, Lee Cooper India Limited, et cetera. The company continued to do so till 2013, when the name was changed once again and this time, it was renamed to Future Consumer Enterprises Limited. Over the course of next few years, it entered into various strategic partnerships to consolidate its position in the Indian retail sector.
Management of the Company
Mr. G.N. Bajpai - Chairman
Mr. G.N. Bajpai presently serves as the Chairman of the Board at Future Consumer Limited. He holds a Bachelor’s degree in Law from the University of Indore and a Master’s degree in Commerce from the University of Agra. Prior to this, he served as the Chairman of the Board at Securities and Exchange Board of India and the Life Insurance Corporation of India. He has also served as a Non-Executive Chairman and as a Director on the boards of various other reputed companies like Axis Bank, ICICI Bank, General Insurance Corporation of India, et cetera. He has also received the ‘Outstanding Contribution to the Development of Finance’ award from the then Prime Minister Dr. Manmohan Singh.
Mr. Kishore Biyani - Chief Executive Officer, Future Group
Mr. Biyani presently serves as the CEO of the Future Group. In addition to this, he is also associated with the various companies of the group. He serves as the Managing Director of Future Retail Limited and Future Lifestyle Fashions Limited. Furthermore, he serves as the Chairman of the Board at Future Media India Limited. He has led some of the most popular retail chains in India - outlets that span across more than 200 cities and serve more than 300 million customers. For his contribution to the retail sector in India, he has received various awards like ‘CEO of the Year - 2001’, ‘Most Admired Retailer of the Year - 2004’, and ‘Retail Face of the Year - 2005.’ Mr. Biyani is a graduate of HR College of Commerce, Bombay, where he obtained a Bachelor’s degree in Commerce.
Mr. Narendra Baheti - Director
Mr. Baheti currently serves as an Executive Director at Future Consumer Limited. He has held this position since August 2016 and prior to this, he served as the Business Head of the company’s Agri Division. He has been a part of the Future Group since 2002, when the group launched its first Big Bazaar outlet. He has played an important role in improving the supply chain management across all the company’s operations, along with strengthening and diversifying its agri business.
Future Consumer Limited Listings in NSE, BSE, and Stock Market Indices
The equity shares of the company are available to the general public for trading on the country’s two most prominent stock exchanges - the National Stock Exchange of India Limited and the Stock Exchange, Mumbai. The respective call sign for the same are as follows:
- NSE Code: FCONSUMEREQ
- BSE Code: 533400
- ISIN: INE220J01025
- Sector: Food Processing - Dairy/Fruits/Others
Coming to the stock market indices, the company comprises the following:
- Nifty 500
- Nifty 200
- Nifty Alpha 50
- Nifty Midcap 100
- Nifty Midcap 150
- S&P BSE 150 MidCap Index
- S&P BSE 500
- S&P BSE AllCap
- S&P BSE SmallCap
Future Consumer Limited
Shyam Nagar, Off Jogeshwari Vikhroli Ring Road
Jogeshwari East, Mumbai - 400060
Contact number: +91-22-6119-0000
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