External broker reports(aggregated public sources), HDFC Securities

HDFC Securities

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External broker reports(aggregated public sources)

HDFC securities is the best online trading platform for stocks, IPOs, mutual fund in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

<ul><li>We downgrade Westlife Foodworld to Reduce from ADD with a TP of Rs 800 (30x FY26 Pre IND-AS EV/EBITDA) as we expect it to deliver Revenue, EBITDA and PAT CAGRs of 15/18/24% over FY23-26 on the back of (a) weak macros, (b) increased competitive intensity, as more nimble and new age brands get access to capital along with Burger King taking route of aggressive pricing to grab market share, (c) external headwinds such as geopolitical turmoil leading to boycott of certain American brands along with recent controversy relating to quality of cheese, (d) increase in royalty rate from 4.5% in FY24 to 5% in FY25. We will turn buyers on the stock once we see above highlighted transient headwinds receding</li><li>However, structural levers remain intact given a) its ability to drive high single SSSg on a sustainable basis owing to NPD and product customization; b) exponential growth is yet to be fully leveraged in platforms (McDelivery, McCafé and Breakfast) as heavily capitalized online food aggregators show extreme hunger for expansion and gradual building up of Café culture in India; c) massive store opening opportunity (3x potential of current stores).</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

We downgrade Westlife Foodworld to Reduce from ADD with a TP of Rs 800 (30x FY26 Pre IND-AS EV/EBITDA) as we expect it to deliver Revenue, EBITDA and PAT CAGRs of 15/18/24% over FY23-26 on the back of (a) weak macros, (b) increased competitive intensity, as more nimble and new age brands get access to capital along with Burger King taking route of aggressive pricing to grab market share, (c) external headwinds such as geopolitical turmoil leading to boycott of certain American brands along with recent controversy relating to quality of cheese, (d) increase in royalty rate from 4.5% in FY24 to 5% in FY25. We will turn buyers on the stock once we see above highlighted transient headwinds recedingHowever, structural levers remain intact given a) its ability to drive high single SSSg on a sustainable basis owing to NPD and product customization; b) exponential growth is yet to be fully leveraged in platforms (McDelivery, McCafé and Breakfast) as heavily capitalized online food aggregators show extreme hunger for expansion and gradual building up of Café culture in India; c) massive store opening opportunity (3x potential of current stores).Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Westlife Foodworld (4QFY24): Prolonged Road to Recovery. Downgrade to REDUCE

Westlife Development

Westlife Foodworld (4QFY24): Prolonged Road to Recovery. Downgrade to REDUCE