1
Please refer to important disclosures at the end of this report
1
1
Future Lifestyle Fashions Ltd (FLFL) operates its retail outlets in three broad
formats, namely Central (big-box fashion retailer), Brand Factory (liquidation
channel) and EBO/Planet Sports. The company's retail stores have consistently
outperformed peers with respect to like to-like growth, averaging 10% over the
past three years. Currently, FLFL has a retail footprint of over 5.5mn sq. ft., which
is expected to grow to over 6.6mn sq. ft. by FY19, well ahead of its peers. The
top six brands have sales of over `100cr each and reported 12% sales CAGR
over FY14-17, higher than overall revenue growth of 9%. Investee brands not
only fill gaps in FLFL's portfolio but also provide value unlocking to the company
upon divestment. FLFL’s plan is to add 6-7 Centrals and 8-9 Brand Factories
every year, leading to an annual capex of ` 220cr. FLFL has been maintaining a
healthy dividend payout of 32.27%. It has reported a healthy bottom-line of 25%
CAGR over FY2014-17. Further, the company’s debt/equity ratio has improved
from 1.05 in FY2014 to 0.35 in FY2017 and also the cash flow has improved
from (`592.97cr) in FY2014 to `288.47cr in FY2017.FLFL is trading at 21.36x
EV/EBITDA and has reported RoE of 3.42% of FY17 TTM earnings. Hence Buy.
BUY
CMP `374
52 Week High / Low
410.55/108.75
Avg. Daily Volume
63,351
Department Stores
Market Cap (` cr)
7,153
2
BSE Sensex
32,273
Nifty
10,085
Face Value (`)
Reuters Code
FLFL.NS
FLFL:IN
1.1
Vaibhav Agrawal
022 3935 7800 Ext: 6808
[email protected]gelbroking.com
Future Lifestyle Fashions Ltd
Others | Department Stores
Sept 18, 2017
2
Future Lifestyle Fashions Ltd |Department Stores
June 5, 2017
2
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement Future Lifestyle Fashions
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment period): Reduce (-5% to -15%) Sell (< -15)