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.
Nirmal Bang Report
We recently hosted the management of Westlife Foodworld Ltd. to get an overall business update. Key highlights from the conference:
High density of highway stores and value proposition offered by the company have been a bulwark for Westlife Foodworld in the current uncertain environment, leading to better performance compared to peers.
While the unorganised market in food services has gained back some share post the Covid shock, the value proposition offered by the McDonald's brand has served Westlife Foodworld well to curb this impact relative to others.
Incremental expansion in South India and tier-II cities with the Chicken offering has led to narrowing of average unit volume between the West and the South markets.
Outlook on the cost front is now better compared to the preceding quarters. Westlife Foodworld is not planning any price hikes currently but lower end of the average 3-5% price increase could happen in FY24 if required.
The company expects the beverage part of the business (McCafe) to see significant growth in future.
The stock is now trading at ~33 times/28 times FY24E/FY25E pre-Ind Accounting Standard Ebitda.
Westlife Foodworld has been our top pick in the consumer discretionary space and has yielded relatively healthy returns, backed by strong financial performance on a consistent basis.
Click on the attachment to read the full report:
DISCLAIMER
This 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.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
