Sapphire Foods Q1 Results Review- Pizza Business Continues To Witness Pressure; Maintain 'Sell': Dolat Capital

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.Sapphire Foods India Ltd.’s Q1 FY24 results were ahead of our estimate. The company reported 19.8% revenue growth helped by 21.2/11.7% growth in KFC/Pizza Hut while Sri Lanka sales growth improved to 27% in Indian rupee terms. Sri Lanka business reported 9% growth in Sri Lankan rupee terms but 27% in INR terms – due to appreciation in local currency. Also, the business reported 9% Ebitda decrease in LKR terms, it increased 8% in INR. Going ahead, Sri Lanka business would benefit from favorable base.Sapphire Foods opened 35 new stores during Q1 (17 KFC, 16 Pizza Hut and 1 KFC and pizza Hut in Maldives), taking the total store count to 778. The company would continue to add 130-160 stores every year going ahead with a cluster based approach and penetration strategy. However, in case of continuous slowdown, Sapphire Foods would slow down store addition pace.We have reduced our FY24E earnings per share estimates to Rs 24.4 to factor in higher tax incidence. However, we have maintained our FY25E EPS estimates at Rs 31.1 as it factors in the expected improvement. We arrive at a target price of Rs 1,246 (40 times FY25E EPS). Maintain 'Sell'..Click on the attachment to read the full report:.Westlife Foodworld Q1 Results Review - Strong Performance In Weak Environment: Motilal Oswal.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Sapphire Foods Q1 Results Review- Pizza Business Continues To Witness Pressure; Maintain 'Sell': Dolat Capital

Results ahead of estimate; but quality remains weak.

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