Buy Westlife Foodworld, target price Rs 995 : JM Financial

economictimes.indiatimes.com:

JM Financial has buy call on Westlife Foodworld with a target price of Rs 995. The current market price of Westlife Foodworld is Rs 847.

Westlife Foodworld, incorporated in the year 1982, is a Mid Cap company (having a market cap of Rs 13136.06 Crore) operating in Tourism & Hospitality sector. Westlife Foodworld key Products/Revenue Segments include Income From Sale Of Share & Securities for the year ending 31-Mar-2022.Financials For the quarter ended 31-03-2023, the company has reported a Consolidated Total Income of Rs 561.96 Crore, down -9.25 % from last quarter Total Income of Rs 619.21 Crore and up 20.03 % from last year same quarter Total Income of Rs 468.18 Crore.

Company has reported net profit after tax of Rs 20.09 Crore in latest quarter. Investment RationaleAs per the brokerage, the key differentiator has been Westlife’s a) ability to create and successfully scale up newer revenue drivers; b) well laddered portfolio ensuring value for money proposition remains intact and c) calibrated store expansion rather than just focusing on store density. The construct & opportunity of Indian QSR space remains extremely attractive.

Westlife through its multi-channel/multi-day-part and multi-brand offerings has presence in fast growing segments with large addressable opportunity (TAM of INR >200 bn). With execution machinery in place, the brokerage believe it is well placed to achieve its Vision 2027 and given the superior execution, ICICI Securities expects premium valuations to sustain.