Westlife

Westlife share price: Buy Westlife Development, target price Rs 650 : Emkay Global Financial Services

Emkay Global Financial Services has purchased Westlife Development Ltd. with a target price of Rs 650.0. The current market price of . is Rs 455.9 The period given by the analyst is the year when the price of Westlife Development Ltd. can achieve the set goal.

Westlife Development Ltd., incorporated in 1982, is a mid-cap company (having a market capitalization of Rs 4940.14 Crore) operating in the tourism and hospitality sector.

The main products/revenue segments of Westlife Development Ltd. include income from the sale of stocks and securities for the year ending March 31, 2021.




finance

For the quarter ended 31-03-2022, the company reported a consolidated total revenue of Rs 468.18 Crore, down -2.68% from last quarter. Total revenue of Rs 481.10 Crore and up by 29.74% compared to the same quarter last year. Total income of Rs 360.87. Crore. The company reported net profit after tax of Rs 15.32 Crore last quarter.

Investment rationale:
WLDL reported revenue growth of approximately 27%, driven by 23% from SSG and new store additions (up 7% to 326 stores). Compared to Q4FY20, revenue growth was around 35%, driven by a full recovery of the restaurant channel and the doubling of convenience sales (mix of 48% now vs. 32% in Q4FY20). WLDL pointed out that the addition of gourmet burgers/fried chicken has premiumized its portfolio and enhanced its offerings in the meals category of the Indian informal restaurant (IEO) market, while it already holds leading positions in the snack categories. /end of the night.

Upon full reopening, WLDL has the potential to offer a relatively higher upside, thanks to the added convenience contributions and full restaurant recovery, in our view. While gourmet burgers have been rolled out across the network, fried chicken is currently in the southern market with few pilots in the western region. Store additions were robust with 10 net additions in the fourth quarter. WLDL expects to add 35-40 stores in FY23E and over 200 store additions over the next 3-4 years.

Promoter/Fii Holdings
The promoters held 56.98% of the company’s capital as of March 31, 2022, while the FIIs held 9.94% and the DIIs 22.84%.

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