Shares of fast restaurant service supplier Burger King India Ltd. continued to surge on Wednesday because it hit the upper circuit for the third straight day. On Wednesday, its shares on the BSE reached Rs 199.25, rising Rs 33.20 or 19.99 per cent from its earlier shut.
The firm’s inventory bought listed on Indian bourses on Monday and on the debut day itself, it opened at a premium of over 87 per cent over the IPO value at Rs 112.50.
The efficiency of the inventory had even defied projections made by a number of analysts who had anticipated Burger King to checklist at round 70-75 per cent premium over concern value.
“Such listing was in line with our expectation as the company issue was priced at a significant discount compared to listed peers such as Jubilant FoodWorks (Domino’s Pizza) and Westlife Development (McDonald). Short term investors can book profit. We advise long term investors to stay invested in the company as there is ample scope available for the company to increase its business in India,” Keshav Lahoti Associate Equity Analyst, Angel Broking Ltd. mentioned.
BKIL enjoys unique National Master Franchisee Rights in India until December 31, 2039, with an obligation to develop and open a minimum of 700 eating places by December 2026. It is among the quickest rising QSR chain India with 268 eating places unfold throughout 17 states/UTs and 57 cities. It has already garnered 5 per cent market share in India’s Rs 34,800 crore QSR market.
According to Motilal Oswal Financial Services, over FY18-20, BKIL’s Revenue/EBITDA grew at a CAGR of 49 per cent/258 per cent led by 2x the shop power. However, it continues to make losses at PAT stage.
The identical retailer gross sales progress stood at 12.2 per cent/29.2 per cent in FY18/FY19 whereas it surprisingly turned flat in FY20. In 1HFY21, income declined 68 per cent YoY, whereas it made losses at EBITDA and PAT ranges because of the Covid-19 impression.