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Neutral Westlife Foodworld; target of Rs 805: Motilal Oswal

Motilal Oswal recommended Neutral rating on Westlife Foodworld with a target price of Rs 805 in its research report dated December 01, 2022.

December 02, 2022 / 04:04 PM IST
 
 
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Motilal Oswal's research report on Westlife Foodworld

Sales Target of INR 40b-INR45b in the next five years (our estimate stands at INR23.2b for FY23) This growth will be facilitated by an additional 250-300 stores from its current 337 over the next five years. Over the next five years, EBITDA margin range is targeted at 18-20% on Post Ind-AS and 15-17% Pre Ind-AS (our FY23 estimates stand at 16.8% and 12.8%, respectively). The management, however, indicated royalty only until FY26 as per current visibility, while also mentioning that it will eventually move to 8%, a move that is likely to be gradual.

Outlook

Our valuation at 30x pre-Ind AS Sep’24 EV/EBITDA leads to a TP of INR805.

For all recommendations report, click here

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Westlife Foodworld - 02 -12-2022 - moti

Broker Research
first published: Dec 2, 2022 04:04 pm

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