Westlife Foodworld Q3 Results Review — Challenges Persists Says HDFC Securities, Maintains 'Reduce' Rating

Westlife Foodworld's management has continued its aggression in opening drive-thrus; seven of 15 new stores were opened in the drive-thru format..NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .HDFC Securities Institutional Equities.Westlife Foodworld Ltd.’s Q3 FY25 results were marginally ahead of our estimates due to a lower-than-expected royalty rate. However, operational numbers were far weaker, with 3% same-store sales growth. Notably, SSSG was subdued despite a favorable base (-9%) and management's aggression on the value meal platform. We maintain a Reduce rating with a target price of Rs 680 (30x FY27 Pre-IND-AS EV/Ebitda) as we expect it to deliver revenue and Ebitda CAGRs of 11% over FY24-27, driven by-weak macros,increased competitive intensity as more nimble and new-age brands gain access to capital, along with Burger King adopting an aggressive pricing strategy to grab market share, external headwinds such as geopolitical turmoil leading to boycotts of certain American brands, andthe increase in the royalty rate from 4.5% in FY24 to 5.5% in FY27..Click on the attachment to read the full report:.Tata Motors, Raymond, Voltas, Hitachi Energy Shares React Post Q3 Results.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Westlife Foodworld Q3 Results Review — Challenges Persists Says HDFC Securities, Maintains 'Reduce' Rating

Westlife Foodworld's structural levers remain intact says the brokerage.

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