ValuePickr Forum

Future Consumer Enterprises Ltd

(Vijay) #103

I never said they are not on Amazon.

As I said, I was unable to find the product on Amazon. Could you please provide the product link on Amazon if you still see it?

(krrish seth) #104

It’s very interesting Biyani adopting some better ideas

(Vijay) #105

Unless we can see a product at Amazon or Big basket , it is just a press release .

(Vinne123) #106
(rvetri) #107

Watch Kishire Biyani’s exhaustive interview. He says - Ram Charan is my coach and mentor now. He is teaching me on execution. And he says - he does not believe in succession planning. He will be very happy if his daughters are just good shareholders in the future. he is brutally honest about his failures and learnings…

6 Likes
(Vinne123) #108

Excellent News for Future Consumer on a black Tuesday for market, if this deal goes on then sky is the limit for Future Group… thrilled to see this news

(Darkwanderer79) #109

How will any future tie-up with Amazon or Alibaba impact Future Consumer per se?

(Vinne123) #110

Results Average… will have to wait few more quarters before this makes any significant profits… but still its a long term growth story, Company in expansion phase … can’t expect everything to workout now itself in one or two quarters.

(Vinne123) #111

Future Consumer Q3 (YoY)

Revenue up 42 percent at Rs 784 crore.
Net loss at Rs 3.1 crore versus loss of Rs 11.3 crore.
Ebitda at Rs 16.5 crore versus Rs 3.2 crore.
Margin at 2.1 percent versus 0.6 percent.

(Vinne123) #112

Morgan Stanley on Future Consumer

Maintained ‘Overweight’ with price target of Rs 95.
December quarter showed strong revenue growth and operating leverage.
Overall revenue growth driven by fruits and vegetables, FMCG, and staples.
Scale-driven efficiencies, better fixed-cost absorption, and product mix improvement to drive margins.

(Kumark) #113

Hi All,

Just curious to know if all is well with future consumer ? sudden price fall is there indication of something we are not aware about ? or event ? looking forward to your feedback.

Thanks
Kumar

1 Like
(sandeeppingale) #114

IMO, reason for sell off could be that Investors have started booking profits or loss to show in Income tax filing… I may be wrong but FCEL is looking attractive at current price…

2 Likes
(pradhansp) #115

One more JV partnership by Future Consumer Ltd:

Future Consumer said it has entered into a joint venture agreement with Bin Ablan Group, to establish the business of manufacturing, packaging, marketing, selling, sourcing and distributing cupcakes and pound cakes, by way of forming a joint venture company. Bin Ablan is a Dubai-based company operating in the manufacturing of cakes and other FMCG manufacturing and distribution activities. Future Consumer and Bin Ablan each, directly or through their respective affiliates, shall hold 50% of the paid-up share capital of the joint venture company.

Sources:

4 Likes
(Kumark) #116

Quite challenging to understand the strategy he keeps changing, every time new methodology. He is not focusing on the one direction and that is concern i feel. Board your opinion invited.

Disc: Invested

1 Like
(Varun) #117

To Quote from the above news article

“The strategy at nearly 280 Big Bazaar outlets will result in about Rs 20,000 crore savings for consumers annually, the company said.”

“For its Vision 2021, Future Group is looking to more than treble revenue to Rs 75,000-1 lakh crore from Rs 22,000 crore last year.”

I don’t know what to make out. Data points are misleading… How can you save Rs 20,000 cr from Rs 22,000 cr revenue?

Disc: Not Invested

(ASPN) #118

Its 2000 Cr, not 20,000 Cr.

Its like pricing a product at Rs.100, giving 50% discount, and stating that the consumer has saved Rs.50.

The aim of the group, it seems, is to compete with other big discount retailers like D-Mart and online giants by offering best priced goods. And the savings (read : discounts) will be the largest in their private labels :slight_smile:.

3 Likes
(Varun) #119

all right… They must have edited the report and rectified it… I just did copy paste…

Now, if I give average 9% discount to customer, it may improve my volumes, but do we have that much margins?

1 Like
(rvetri) #120

The turn over of the company of Rs 22K cr is annual, while the savings of
Rs 20K cr quoted by KB is possibly cumulative over several yrs. In this
case, may be he is quoting the saving between 2018 - 21. We have to read
the statements in the context.

(shreys) #121

In my humble opinion, the valuation of Future Consumer is awfullly expensive.
I performed some calculations and compared the performance of Future Consumer with the retailing behemoth- Walmart. The results were baffling.
Future Consumer:
Sales: 2300 Crores( Year ended March,2018)
Net profit: 30 Crores
Market Capitalisation:10500 Crores

Walmart:
Sales( in late 1970s)- 3100 Crores
Net profit:100 Crores
Market Capitalisation: 1250 Crores
Relevant adjustments for inflation and purchasing power parity have been made for Walmart’s financials.
1$= Rs 12
Walmart was earning more money than Future consumer. Yet, available for a valuation less than 15% of Future Consumer. Walmart was a rapid grower and consistent profit generator.
Walmart was an expansion machine.

Now, let’s consider the case when Walmart’s valuation became equal in 1986 to Future Consumer’s valuation today.
Sales(1986): 22000 Crores ( Inflation and purchasing power adjustments made)
Net profit: 850 Crores

One reason often cited for FCL’s elevated valuations will be the growth prospects. But, it’s pertinent to note that even Walmart was growing tremendously. Yet, it was available at reasonable valuations.
Is it possible that in the current valuations of FCL too many expectations have been discounted?
For a company that has hardly generated profits are such valuations sustainable?

5 Likes
(grohal) #122

While your efforts are commendable but there is no similarity between the business model of the two companies. One is FMCG and other is Retail. At best you can compare Walmart to Future Retail.
Also 1986 was a different period when high growth companies like Walmart with a proven record was trading at less than 15x PE. There is no company in the entire exchange now which is trading at those valuations. Future retail 45x, Dmart 120x, V-Mart 50x, V2-Retail 60x !!!

5 Likes