Future Consumer zooms over 15%

Future Consumer is the top gainer on the BSE currently, hogging away all the limelight. The stock zoomed up over 15% to Rs.67.50, less than Rs2.50 away from its high of Rs.69.80. Volumes have jumped up over 4 times.

The stock is seeing this run-up after Morgan Stanley in its research report stated that it has set a target price of Rs.95, a 61% bump up from yesterday’s close. It has given it an ‘Overweight’ rating.

In its report Morgan Stanley has stated that it expects the company to expand its margins on the back of scale-driven efficiencies, better fixed-cost absorption, and product mix improvement. It expects the company’s EBITDA margin to expand by 470 bps by FY20 and become the country’s fifth-largest FMCG company by FY21.