Westlife Development Q4 Review – In Line, Fair Valuations Limit The Upside: Motilal Oswal

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.

All operating parameters for Westlife Development Ltd. – same stores sales growth, sales, gross margin, and Ebitda – were in line.

Unusually higher other income and lower than expected interest costs led to the profit after tax beat.

The management said that dine-in is back to pre-Covid levels and yet the convenience platform is doing much better than pre-Covid levels.

The opportunity for quick service restaurants in India is attractive and has enhanced significantly post-Covid, as elaborated in our thematic note in December 2021.

While Westlife Development’s prospects are improving, earnings growth over the next four to five years can be weaker than its peers, given:

  1. the scheduled increase in the royalty rate to 8% in FY27, and

  2. limited room to improve gross margin, with 80% of its stores already having McCafe outlets.

Click on the attachment to read the full report:


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.

Most Related Links :
honestcolumnist Governmental News Finance News

Source link

Back to top button