Sapphire Foods - On The Cusp Of A Turnaround, Valuations Attractive: Motilal Oswal Initiates Coverage

Sapphire Foods - On The Cusp Of A Turnaround, Valuations Attractive: Motilal Oswal Initiates Coverage

Close up of a KFC Burger. (Source: Unsplash)

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.

Motilal Oswal Report

Sapphire Foods India Ltd. offers an exciting investment opportunity in the Indian quick service restaurant space on account of the following factors:

  • the Indian food service industry is expected to clock 9% compound annual growth rate in the coming years, with QSRs likely to grow faster at 23% CAGR over FY20-25.

  • Sapphire Foods’ new scalable restaurant economic model is a game-changer. Its omnichannel strategy and reduction in store sizes, along with other elements of the model, have led to a big shift in the company’s unit economics.

  • KFC India’s business is on a strong footing, with a healthy ADS and profitability. We expect it to register 31% sales CAGR over FY22-24E driven by rapid store additions and strong same stores sales growth aided by a smart recovery post-Covid-19.

Click on the attachment to read the full report:

Motilal Oswal Sapphire Foods Initiating Coverage.pdf
Read Document

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.

lock-gif
To continue reading this story
Subscribe to unlock & enjoy all
Members-only benefits
Still Not convinced ?  Know More
Get live Stock market updates, Business news, Today’s latest news, Trending stories, and Videos on NDTV Profit.
GET REGULAR UPDATES