1 FRETAIL share price target reports by brokerages below. See what is analyst's view on FRETAIL share price forecast, rating, estimates, valuation and prediction behind the target. You may use these research report forecasts for long-term to medium term for your investment or trades in 2020.
We believe option for Amazon to acquire shareholding of Biyani family removes overhang related to ~Rs80bn of promoter pleadge across group. Although the time period of 3-10 years and limitaions on FDI in multibrand retail are a roadblock, the restrictive covenents for raising further capital, pleadge and transfer will increase investor confidence in FRL. We estimate PAT growth of 20.1% in FY20 and flattish in FY21 due to tax impact (33.7% PBT CAGR) over FY19-21 and value the stock at Rs512 based on 30xFY21EPS. Maintain BUY.
We continue expecting the company to add 15/10/200 new BB/FBB/Easyday stores over FY20-21, with 9% SSSG for BB.Making adjustments to account for Ind-AS 116 changes, our EBITDA estimates have doubled, but revenue/PAT estimates remain unchanged. We expect revenue/PBT CAGR of 13%/27% over FY20/21. PAT estimated to grow at 7% on inclusion of MAT. We believe the recent announcement of promoter warrant issue and plans to buy back assets from FEL may clean up the ownership structure. This should clear investor concerns and lend support to valuations, in our viewWe ascribe 9x EV/EBITDA on FY21E basis (post Ind-AS 116 adjustment), arriving at a target price of INR550 (unchanged). Maintain Buy.
Recently announced INR20b promoter warrants should be utilized in releasing FRLassets from FEL, a move that will clean FRL’s asset ownership structure. Stock currently trades at 29x FY21E EPS, at an EV of 16x FY21E EBITDA. We ascribe 20x (~ at three-year average multiple, since listing) EV/EBITDA on FY21E, arriving at a TP of INR550 (prior: INR580). Maintain Buy.
SOURCE: Data from D'Market via Quandl. Intraday data delayed 15 minutes.
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