Westlife Foodworld's Focus On Volume Growth; Store Expansion Continues —  Motilal Oswal Maintains 'Neutral'

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Motilal Oswal Report

We believe that once the demand environment improves, Westlife Foodworld Ltd. will be a key beneficiary. The company has been more aggressive in-store additions, which was not the case historically. The current demand environment is not conducive to aggressive expansion; therefore, the benefits of these efforts are likely to be back-ended.

The revenue gap between dine-in and delivery has narrowed, driven by improved dine-in footfall. We remain watchful for average daily sales recovery, as it could quickly enhance unit economics. The stock is currently trading at ~38 times FY26E and ~29x FY27E pre IND-AS Ebitda.

We reiterate our Neutral rating with a target price of Rs 800, based on 35x FY27E EV/Ebitda (pre-IND-AS).

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