Future Consumer zooms over 15%

Right from the opening bell today, Future Consumer is the top gainer on the BSE. The stock price rose over 15.5% to Rs.58.35 and continues to remain firmly in the green. Volumes too have surged to over 2.2 times to over 12 lakh shares.

The only reason the stock is showing this kind of movement today is thanks to the report put out by Motilal Oswal. The brokerage firm stated that it has initiated coverage on the stock, putting out a “Buy” call and has listed down various positives that it foresees for the company. It has put the target price at Rs.76 within 12 months. The brokerage expects that the current aggressive foot print expansion drive and bran initiatives augur well for the company as 95% of the company's sales are derived from the brand portfolio.

A couple of months ago, even Morgan Stanley had stated that it was extremely bullish about the stock and it had given it the target price of Rs.95. It expects Future Consumer to become the country’s fifth-largest FMCG company by March 2021.