In the near term, HyperCity will drag Future Retail’s earnings per share, thanks to the equity dilution as well as its lower margins. But the sky-high valuation of retail firms hasn’t cost Future Retail much in its purchase of Shoppers Stop Ltd’s subsidiary, HyperCity Retail (India) Ltd. As such, Future Retail has its task cut out; although, analysts seem gung-ho about the company’s prospects under the new owners. Of course, the 140-million-dollar question is if Future Retail can quickly turn around things on the profitability front. In the near term, HyperCity will drag Future Retail’s earnings per share, thanks to the equity dilution as well as its lower margins.

Source: Mint October 06, 2017 01:52 UTC