Is there an opportunity in Future Consumer Limited (NSE: FCONSUMER) now? Nse: Fconsumer Limited , an India-based food company, has seen decent stock gains recently on the NSEI. Since many analysts monitor stocks, we can assume that all price-relevant announcements have already been factored into the stock price. But what if the action is still a robbery? Let’s look at the Future Consumer outlook and value based on the latest financial data to see if the opportunity still exists. Check out our latest review for future consumers.
Nse: Fconsumer reports a consolidated net loss of Rs 175 crore in Q4
MUMBAI (Maharashtra) [India], Jul 11 (ANI): Future Consumer Ltd has reported a close net loss of Rs 1.75 crore for the January-March quarter compared to a profit of Rs 7.75 crore for the same period of the previous fiscal year.
The net profit margin was minus 18.51 percent, down 19.26 percent from the previous year. Net sales for Q4 FY20 were Rs 9.47 crore, down 8.7% from Rs 1,037 crore in Q4 FY2019.
Earnings before interest, tax, depreciation, then amortization (EBITDA) were a loss of Rs 66 crore. EBITDA margin as of the fourth quarter of fiscal 20 was minus 7 percent.
“Covid-19 began to affect performance towards the end of March, causing sourcing, supply chain, and distribution disruptions, impacted by store closures due to lockdowns,” the company said in a statement.
Future Consumer is engaged in the sourcing, manufacturing, and marketing consumer goods and processed food products. (ME TOO)
How much is the Nse: Fconsumer worth?
According to my relative valuation classical, the stock is currently overvalued. In this case, I used the price-to-book (PB) ratio because there isn’t enough information to forecast the stock’s cash flows reliably, and its earnings don’t reflect its actual value. I consider the Future Consumer ratio of 10.71x above the comparative average of 2.33x, suggesting that stocks are overvalue relative to the food industry. Also, Future Consumer’s stock price appears to be pretty stable, which could mean two things: first, it could take a while for the stock price to fall back into an attractive buying range, and second, the chances of buying low in the Future could be reduc once it has reach this value. The stock is less volatile than the broader market due to its low beta.
How is the Future of the Future Consumer?
Prospects are essential when buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company by a robust outlook at a great price is always a good investment, so let’s look at the company’s future expectations. With sales expected to double in the next few years, the Future for prospective consumers seems exceptionally bright. If the spending can also be sustaine, it looks like higher cash flows are in the offing for the shares, which should result in a higher valuation of the shares.
What this means to you:
Are you a shareholder? FCONSUMER’s optimistic future growth appears to have been factored into the current share price, as the shares are trading above fair value. However, this raises another question: is now the right time to sell? If you think that FCONSUMER should be trading below its current price, it may be profitable to sell high and repurchase it when its price falls to its actual value. But before making that decision, see if your fundamentals have changed.
Are you a potential investor? If you’ve been watching FCONSUMER for a while, now may not be the best time to buy shares. The price has outperformed its industry peers, so there will likely be no further upside from price gouging. However, the upbeat outlook is encouraging for FCONSUMER. So it is worth digging into other factors to capitalize on the next downturn.
The price is just the tip of the iceberg. Delve into what matters, the basics, before deciding on a Future Consumer. Find everything you need about future consumers in the latest infographic research report. If you’re no longer intereste in Future Consumer, you can use our free platform to view my list of 50+ high-growth stocks.