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Future Consumer, Waterbase, Gufic Biosciences hit record high

December 15
12:16 2017
Future Consumer, Century Plyboards, Gufic Biosciences, Lumax Auto Technologies, Relaxo Foodwear, Waterbase and NRB Bearings were among 15 stocks from the S&P BSE Smallcap index that hit their respective record high on the BSE in intra-day trade on Friday.

HDFC Bank, Maruti Suzuki India and TVS Motor Company from the S&P BSE500 index, too, hit new highs after nearly one percentage points surge in the S&P BSE Sensex as exit polls predict BJP win in Gujarat.


Future Consumer (FCL), the largest gainer among the pack, surged 11% to Rs 70.30, on back of two-fold jump in trading volumes. A combined 18.39 million shares changed hands on the NSE and BSE till 11:28 AM;

Last week, Morgan Stanley initiated coverage of the stock with overweight rating. The foreign brokerage house predicted the one year target price of the stock price at Rs 95 per share.

“We expect FCL to be India’s fifth-largest fast moving consumer goods (FMCG) company in revenue terms by FY21. Future Groups’ retail ecosystem yields a unique competitive advantage that allows FCL to launch innovative products with a disruptive go-to-market strategy,” Morgan Stanley said in a report.

Waterbase has locked in upper circuit of 10% at Rs 302, extending its Thursday’s nearly 20% surge on the BSE. Since November 14, 2017, the stock zoomed 89% from Rs 160 after the company reported nearly four-fold jump in net profit at Rs 9.4 crore in September quarter (Q2FY18). The company engaged in food products business had posted profit of Rs 2.6 crore in a year ago quarter.

Operational income during the quarter under review grew 21% at Rs 97 crore against Rs 80 crore in the corresponding quarter of previous year. Ebitda (earnings before interest, taxes, depreciation and amortization) margin improved 850 bps to 15.7% from 7.2% in previous year quarter.

Profitability growth on the back of overall improved performance and lower input costs. Strong demand trends across existing markets; positive response in newer markets coupled with improved product mix aided in driving revenue momentum.

Benign input prices were primary contributor to higher operating profitability and margin expansion. Cost containment initiatives coupled with measures undertaken towards enhancing business efficiencies also aided profitability, the company said.

Gufic Biosciences too rallied 11% to Rs 109 after the pharmaceutical company reported more than doubled net profit at Rs 5.67 crore in Q2FY18. It had profit of Rs 2.65 crore in year ago quarter.

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