May 22, 2018 / 4:42 AM / a month ago

BUZZ-India's Future Retail declines to over 2-month low on Q4 loss

** Future Retail Ltd falls as much as 6.9 pct to 491.25 rupees, its lowest since March 9

** Co, which owns hypermarket stores like “Big Bazaar” and fashion retail stores “fbb”, posted March-quarter loss of 4.64 bln rupees ($68.26 mln), compared with profit of 1.23 bln rupees a year earlier

** Co saw exceptional charge of 6.04 bln rupees due to demerger of retail business undertaking of Hypercity Retail (India)

** HSBC cuts PT to 700 rupees from 730 rupees, keeps “buy” rating, while Jefferies cuts PT to 550 rupees from 560 rupees with a “hold” rating

** Co’s new value retailing approach through “Everyday lowest prices” has been a success and should augment same-store sales growth (SSSG) from next qtr - HSBC

** However, lack of clear path of sustainable SSSG, profit in convenience stores keeps this opportunity more like a real option, which is not reflected in the current price performance, HSBC adds

** Jefferies says continues to believe that right to win remains at the large box format and management’s target to break even in “Easy Day” during FY19 will be a tough task given strong expansion plans

** Future Retail’s stock down for a fourth straight session; posts biggest intraday pct fall in nearly three weeks

** Over 886,000 shares change hands, compared with 30-day avg of 659,500 ($1 = 67.9775 Indian rupees)

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