Smartkarma AI Primers, Smartkarma

αSK Primers

Smartkarma AI Primers

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Equity Bottom-Up

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 <li>
Company Under Liquidation: <a href="https://smartkarma.com/entities/future-retail-ltd-4b025726-3be6-41e3-9f59-22ab2a17a8b2">Future Retail Ltd</a>. (FRL) is no longer a going concern. In July 2024, the National Company Law Tribunal (NCLT) ordered the company's liquidation after the corporate insolvency resolution process (CIRP) failed to produce a viable revival plan. The company's assets will be sold to pay off dues exceeding ₹17,000 crore to its creditors.</li>
 <li>
Operational &amp; Financial Collapse: The company's downfall was precipitated by a combination of aggressive debt-fueled expansion, poor risk management, failure to adapt to e-commerce, and the economic impact of the COVID-19 pandemic. This resulted in a catastrophic decline in revenue, a shift to massive net losses, and severely negative cash flows, as evidenced by financial data from 2019 to 2021.</li>
 <li>
No Value for Equity Shareholders: Given the liquidation order and the substantial debt owed to financial and operational creditors, there is an extremely low probability of any residual value for equity shareholders. Trading in the company's shares has been suspended, and the stock has been delisted from exchanges.</li>
</ul>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.


  
Company Under Liquidation: Future Retail Ltd. (FRL) is no longer a going concern. In July 2024, the National Company Law Tribunal (NCLT) ordered the company's liquidation after the corporate insolvency resolution process (CIRP) failed to produce a viable revival plan. The company's assets will be sold to pay off dues exceeding ₹17,000 crore to its creditors.
  
Operational &amp; Financial Collapse: The company's downfall was precipitated by a combination of aggressive debt-fueled expansion, poor risk management, failure to adapt to e-commerce, and the economic impact of the COVID-19 pandemic. This resulted in a catastrophic decline in revenue, a shift to massive net losses, and severely negative cash flows, as evidenced by financial data from 2019 to 2021.
  
No Value for Equity Shareholders: Given the liquidation order and the substantial debt owed to financial and operational creditors, there is an extremely low probability of any residual value for equity shareholders. Trading in the company's shares has been suspended, and the stock has been delisted from exchanges.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Primer: Future Retail Ltd (FRETAIL IN) - Aug 2026

Consumer Analyst / Channel Surveillance Specialist, Trudence Capital Advisors

Pranav Bhavsar

Consumer Analyst / Channel Surveillance Specialist

ASA Capital Management

ASA Capital Management is a boutique Research and Investment Advisory firm focusing on primary research in India. ASA provides bespoke research services to Institutional Clients with a focus on due diligence backed with primary research, Field Trips & Channel Checks.

Thematic (Sector/Industry)

The objective of this Insight is to reflect back on our work published on Smartkarma. To highlight what has worked for us and more importantly what has not worked and our plans to improve the same. 
Going forward our Macro Insights in 2020 will focus on "The Road to USD 5 Trillion Economy". MSME and SME are the heart of Indian Economy, and their ability to grow and innovate will remain the key to achieve this goal and hence the importance to track them.
For Sectoral research, our focus for 2020 will be on Retail, Payments &amp; Auto. As India moves from unorganised to organised trade, Indian Retail is likely to throw up huge opportunities both for incumbents as well as e-retailers. Payments will continue to remain attractive as India goes cashless &amp; the BS-VI related confusions and overall macro demand environment will continue to make Autos an interesting space for 2020.
We intend to make no change in our consumer coverage in 2020, possibly introducing some consumption names along with staples. There are high chances of underperformance in Consumer Staples as we do not expect major volume recovery at least until H2 CY2020.
Lastly, we expect our regional coverage to expand in 2020. We will stick to our core sectors i.e. Consumer Staples, Consumer Discretionary and Auto along with Payments and possibly explore more collaborative and on-ground research with the primary objective of helping a PM with allocation across the region.
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The objective of this Insight is to reflect back on our work published on Smartkarma. To highlight what has worked for us and more importantly what has not worked and our plans to improve the same. 
Going forward our Macro Insights in 2020 will focus on "The Road to USD 5 Trillion Economy". MSME and SME are the heart of Indian Economy, and their ability to grow and innovate will remain the key to achieve this goal and hence the importance to track them.
For Sectoral research, our focus for 2020 will be on Retail, Payments &amp; Auto. As India moves from unorganised to organised trade, Indian Retail is likely to throw up huge opportunities both for incumbents as well as e-retailers. Payments will continue to remain attractive as India goes cashless &amp; the BS-VI related confusions and overall macro demand environment will continue to make Autos an interesting space for 2020.
We intend to make no change in our consumer coverage in 2020, possibly introducing some consumption names along with staples. There are high chances of underperformance in Consumer Staples as we do not expect major volume recovery at least until H2 CY2020.
Lastly, we expect our regional coverage to expand in 2020. We will stick to our core sectors i.e. Consumer Staples, Consumer Discretionary and Auto along with Payments and possibly explore more collaborative and on-ground research with the primary objective of helping a PM with allocation across the region.




2019 Review & 2020 Key Themes | What Has Worked, What Has Not

Senior Credit Analyst, Lucror Analytics

Leonard Law, CFA

Senior Credit Analyst

High Yield Experts

Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

Credit

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.
<ul>
<li><a href="#lucror-entity-26799" target="_blank" rel="noopener">Future Retail Ltd</a></li>
</ul>

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

Future Retail Ltd


Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.
<ul>
<li><a href="#lucror-entity-26799" target="_blank" rel="noopener">Future Retail Ltd</a></li>
<li><a href="#lucror-entity-29148" target="_blank" rel="noopener">Jubilant Pharma Ltd</a></li>
</ul>

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

Future Retail Ltd
Jubilant Pharma Ltd


Morning Views Asia: Future Retail Ltd, Jubilant Pharma Ltd

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

The Indian mutual fund industry has assets of almost INR 5 trillion across Multi cap, Large Cap, Large and Mid Cap, Mid Cap and Small Cap equity schemes. Equity schemes classified as large cap need to have at least 80% of their assets invested in large cap stocks, large and mid cap schemes need to have at least 35% of their assets in large cap stocks and at least 35% in mid cap stocks, mid cap funds need to hold at least 65% of their assets in mid cap stocks, and small cap funds need to hold at least 65% of their assets in small cap stocks.The Association of Mutual Funds in India (AMFI) publishes the list of the stocks in each market cap segment in January and July each year and mutual funds have one month to rebalance their portfolios to adhere to the new categorization.In the upcoming recategorization in January 2021, we see 6 stocks moved from the mid cap segment to the large cap segment with an equal number of stocks moving the other way, and 12 stocks are expected to move from the small cap segment to the mid cap segment with the same number moving the other way. There are quite a few IPOs that will join the small cap list, with just 1 joining the large cap list and 1 joining the mid cap list.Historically, the stocks migrating upward to a higher market cap segment have outperformed stocks that migrate to a lower market cap segment over the 1 month and 2 month period post the publishing of the AMFI list. This can be attributed to fund managers realigning their portfolios to meet the new categorization. This provides opportunities to pre-position for the move and unwind post the announcement of the reclassification.

The Indian mutual fund industry has assets of almost INR 5 trillion across Multi cap, Large Cap, Large and Mid Cap, Mid Cap and Small Cap equity schemes. Equity schemes classified as large cap need to have at least 80% of their assets invested in large cap stocks, large and mid cap schemes need to have at least 35% of their assets in large cap stocks and at least 35% in mid cap stocks, mid cap funds need to hold at least 65% of their assets in mid cap stocks, and small cap funds need to hold at least 65% of their assets in small cap stocks.The Association of Mutual Funds in India (AMFI) publishes the list of the stocks in each market cap segment in January and July each year and mutual funds have one month to rebalance their portfolios to adhere to the new categorization.In the upcoming recategorization in January 2021, we see 6 stocks moved from the mid cap segment to the large cap segment with an equal number of stocks moving the other way, and 12 stocks are expected to move from the small cap segment to the mid cap segment with the same number moving the other way. There are quite a few IPOs that will join the small cap list, with just 1 joining the large cap list and 1 joining the mid cap list.Historically, the stocks migrating upward to a higher market cap segment have outperformed stocks that migrate to a lower market cap segment over the 1 month and 2 month period post the publishing of the AMFI list. This can be attributed to fund managers realigning their portfolios to meet the new categorization. This provides opportunities to pre-position for the move and unwind post the announcement of the reclassification.

India: AMFI Stock Categorization Changes to Drive Active Portfolio Churn

India

Future Retail Ltd. is an India-based company involved in multi-brand retail trading, operating hypermarkets, supermarkets, and home solution segments. It manages various store networks under brands like Big Bazaar, easyday, fbb, and Foodhall. The company was founded in 1987 and is headquartered in Mumbai, India.

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Future Retail (FRETAIL IN)

Primer: Future Retail Ltd (FRETAIL IN) - Aug 2026

Company Under Liquidation: Future Retail Ltd. (FRL) is no longer a going concern. In July 2024, the National Company Law Tribunal (NCLT)...

αSK Primers

2019 Review & 2020 Key Themes | What Has Worked, What Has Not

The objective of this Insight is to reflect back on our work published on Smartkarma. To highlight what has worked for us and more importantly what...

Pranav Bhavsar

Morning Views Asia: Future Retail Ltd

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region,...

Lucror Analytics

Morning Views Asia: Future Retail Ltd, Jubilant Pharma Ltd

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region,...

Lucror Analytics

India: AMFI Stock Categorization Changes to Drive Active Portfolio Churn

The reclassification of stocks to large, mid and small cap will set off a churn in mutual fund portfolios where historically stocks migrating...

Brian Freitas

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)