NEW DELHI: Shares of Future Lifestyle Fashions rallied 6 per cent in Friday’s trade on reports that Future Specialty Retail, a wholly-owned subsidiary, will be the sole Indian retailer for LeeCooper apparel and footwear.
The stock rose 6.28 per cent to hit a high of Rs 476.7 on BSE around 10.14 am (IST). Jefferies on Thursday initiated coverage on the stock with a buy rating. The brokerage has set Rs 510 as target price.
Future Lifestyle, a unique business, has been a consistent performer and we believe that bouquet of malls like department store (Central), liquidation store (Brand Factory) and owned/ licensed brands provide better control and inventory management, Jefferies said.
In an interview to ET Now, Rakesh Biyani, Joint Managing Director, Future Retail, said that Future Lifestyle Fashions’ balance sheet is quite strong with both net working capital and debt to equity ratio have been progressively going down.
“What is going to continue to drive growth is the power brand business. One of the key power brands is Lee Cooper, where we have recently announced the partnership to do footwear business. The partnership will itself take the last year’s numbers for Lee Cooper to Rs 600-crore plus and our goal in the next four to five years is to make it a Rs 1,500-1,600 crore promising denim lifestyle brand,” Biyani said.
Let’s block ads! (Why?)