Future Retail Analysis - 6 June 2017

Future Retail (CMP - 383.10)

All time daily trend

The stock has been continuously riding the bull with small corrections in between. It is in its primary stage of life cycle and so is expected to give good returns in future in Long term.

As per Elliott Wave, currently it is in Wave 5 formation and should correct back to levels of 370-360 before starting to rise back again and cross over 440. The long term investors can expect it to cross 650 in a few months, if no negative news/scenario arises for the stock or the company.

With 278% growth in terms of revenue from 2015 to 2016 year ending, the profits of the company increased to 14.55 crores from previous year's losses of 379.21 crores (which led to a positive EPS as well).

The quarterly results also show a continuous rise in terms of Revenue and Profits of the company over last year, increasing EPS to 56 to 2.14 to 2.61 in Spe'16, Dec'16 and Mar'17 respectively.

The book value per share in Mar'16 ending was 411.18, this definitely means the share of currently undervalued since the value would have only increased after Mar'16 due to increase in operations and profits.

Here's a snapshot of comparable ratios between 2015 and 2016 -

It's current P/E ratio is 48.67 as against industry's P/E of 74.60 which means the stock is highly undervalued in comparison to its peer companies. The company has been expanding its operations at an impressive rate as well.

My personal call would be go long in this stock and we can expect it to be multi bagger of 2017-18.

Note: This is just for analytical and study purpose. I do not hold any stocks of this company nor do I have any relation with this company. I am not an Registered advisor. Invest at your own risk after doing your own analysis.