Broking company, Motilal Oswal has called for buy-in from Burger King India stock and sees a potential side rise of 25% on current level shares.
|Current market worth
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Strong financial performance
According to Motilal Oswal. Despite the dine-in restrictions due to the second coveted wave, Burger King India delivered a strong 1QFY22 performance led by the Delivery Channel. On July-August 21, recovery trends continue to be encouraging, the brokerage noted.
As states allow mall (55% store) and dine-in operations, Burger King India may see an improvement in its performance. The recently launched stunner menu has also got off to a good start. King India is expected to contribute significantly to the performance, “said the brokerage.” According to this, with the expansion of the value platform and the height of entry points, the stunner menu is expected to contribute significantly to Burger King’s performance. ” Because the stunner menu improves the value platform while the gross margin is active, the introduction of BK Cafe is expected to increase SSSG and margins.
In addition to this strong network expansion, ADSK will not be materially affected and its royalty rate will be limited to 5% up to CY39 while providing visibility to margin expansion. Also, the company has reduced its rental costs. The broker said that we have maintained our share rating with a target price of Rs 210 (28x September 23E EV / EBITDA).
Burger King India reported a 130% quarterly increase in its own app order sales and more than 1 million app downloads on 1QFY22. The goal is to get one-third of delivery orders from the BK app. Burger King India 3Q (for test marketing) may open a few cafes indicated before v / s 4QFY22. It has mapped 75-100 restaurants to add to BK Cafe. All new outlets will have a BK cafe. All of this will boost the company’s performance in the coming quarters, making shares of Burger King India an attractive stock to buy at current levels.
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