April 10, 2018 / 5:40 AM / 3 months ago

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

** Apparel & accessories retailer Future Lifestyle Fashions Ltd 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

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