Future Lifestyle Fashions share price rose nearly 3 percent in early trade on February 13 after CLSA maintained a buy rating on the scrip following its December quarter results.
The broking house has kept a target of Rs 535 per share.
The cost control measures aided the margin expansion and see gearing declining to 0.1x by March 2021 versus 0.4x in March 2019, said CLSA.
The company has committed to reducing its related-party transactions as the transactions will fall from 19 percent to 9 percent of sales.
It expect revenue mix to continue the shift in favour of the brand factory and balance sheet is on improving trajectory, it added.
The company's Q3FY20 consolidated net profit fell 8.3 percent to Rs 59.2 crore against Rs 64.6 crore in the year-ago period.
Revenue rose 2.9 percent YoY to Rs 1,742.2 crore.
Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 92.8 percent at Rs 322.9 crore, while EBITDA margin was up 860 bps at 18.5 percent, YoY.
At 09:34 hrs, Future Lifestyle Fashions was quoting at Rs 405.50, up Rs 11.10, or 2.81 percent on the BSE.
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