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.
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