Tag: Burger King IPO

IPO · Stocks

Devyani International IPO : Subscribe or NOT?

Its real ALPHA

The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that

Devyani Internationals Limited IPO-“DIL” is the largest franchisee of Yum Brands in India and is amongst the largest operators of chain quick service restaurants in India and are among the largest operators of chain quick service restaurants (“QSR”) in India on a non-exclusive basis. DIL is also a franchisee of the Costa Coffee brand in India, which is owned by Costa,

Business — DIL’s business is broadly classified into three verticals that includes stores of KFC, Pizza Hut and Costa Coffee operated in India (KFC, Pizza Hut and Costa Coffee referred to as “Core Brands”, stores operated outside India primarily comprising KFC and Pizza Hut stores operated in Nepal and Nigeria (“International Business”); and certain other operations in the F&B industry, including stores of our own brands such as Vaango and Food Street

Region of operation — Major cities in India and in Nepal, Nigeria

Offer purpose —  The IPO is issuance of shares worth ₹1838 crore for debt clearance and general corporate purposes.

Risks —

Termination of or inability to renew long term contracts with brands

Loss making company

High and intense competition in QSR space

Outstanding litigation proceedings against the Company, Subsidiaries, Directors, and Promoters

Strength

Presence across key consumption markets

Highly recognized global brands catering to a range of customer preferences

Multi-dimensional comprehensive QSR player

Future

The quick-service restaurant channel has been rapidly growing in popularity in India, owing to factors such as rise in literacy, exposure to media, increase in disposable incomes, and easier and greater availability. Affordability has also been a key factor.

Valuations

Valuations are high and bit lesser than peers

Should we apply?

People can subscribe only for listing gains. Sell on listing day

Also Read

Burger King IPO crisp Summary — Listing with huge gains as shared

CAMS IPO crisp summary — Listed with 20% gains as shared

Happiest Minds IPO crisp summary –Listed with substantial gains as shared

In case you have any questions/ queries, please feel free to reach me through Contact Form

Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.

Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.

Investing · IPO · Stock Markets · Stocks

IPO stocks and History of gains fizzling out

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IPO STOCKS AND HISTORY OF GAINS FIZZLING OUT
Source Business Line

Read more for these IPO before listing on their business, strength, risks Bector Food , Happiest minds, Route mobile, Rossari biotech, Burger king

Hookup · Startups · Stock Markets · Stocks · Success · Wealth creation

Recent Darlings of Investors

Its real ALPHA

Route Mobile

Route Mobile Rajdip Gupta
Source : Forbes India

Read more here on Route Mobile

Burger King

Burger King Citius, Altius, Fortius
Source : Linkedin/Prashant

Read more here on Burger King

India’s boAT –fifth largest wearable brand in the world

boAT Wearable
Source : Forbes

Read more here on boAT

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Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.

Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.

IPO · Stocks · Wealth creation

Bectors Food Specialities IPO : Subscribe or NOT?

Its real ALPHA1 Comment

The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that

Bector Food Specialities IPO– Mrs. Bector’s Food is one of the leading companies in the premium and mid-premium biscuits segment and the premium bakery segment. Company is largest supplier of buns for QSR restaurants in India.

Business — Sells Biscuits, Bakery products, Frozen Products. And a contract Manufacturer for Oreo and Bournvita biscuits

Offer purpose — Offer for sale (540cr) including fresh issue of 40 cr. for expansion and general purposes

Key Service domains – Biscuits domestic 43% of total sales, 24% exports of total sales.

Key export regions are Africa and North America. Total 64 countries where export is done

Risks —

There are cases of non-compliance against certain legislations in the past by group company and some disciplinary actions as well

Highly competitive industry with company having only 1% market share. Margins can reman depressed for quite long time putting strain on cash flows

Low shelf life of certain products

Company do not have any long term supply agreements with any of their QSR customers is a strange thing and deals on day to day basis requirement for bns, bakery and frozen products

One of the lowest risk but having high business impact is focus on nutritional value of products which can hamper sales in future

Strength

A leader in biscuits and bakery segments in North India with well-diversified product portfolio.

Major food certifications i.e. BRC, USFDA, and FSSC.

Modern production process, Strong sales and distribution network.

Strategically located in proximity to target markets which minimizes freight and logistics related expense and time

Future

QSR is thriving industry and consumption food business will gain. QSR CAGR expected to grow >20% for next 4-5 yrs

Proxy play to QSR story, so should do well in coming years

Source DHRP

Valuations

Profit making company but PAT going down from last three years

Focusing on growth in premium biscuits and bakery segment to improve margin having high competition

As compared to peers, valuations looks ok but needs consistent review

Should we apply?

People can subscribe looking at growth prospects

Listing day may see good gains. Recommended to sell if getting 10-30% gains on listing day

One can also hold long and review holdings with each quarter earnings

Also Read

Burger King IPO crisp Summary — Possible Listing with gain on cards

UTI AMC IPO crisp Summary — Listing with loss as shared

CAMS IPO crisp summary — Listing with 20% gains as shared

Angel Broking IPO crisp summary –Listing with loss as shared

Happiest Minds IPO crisp summary –Listing with substantial gains as shared

In case you have any questions/ queries, please feel free to reach me through Contact Form

Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.

Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.

IPO · Stocks · Wealth creation

Burger King IPO : Subscribe or NOT?

Its real ALPHA22 Comments

The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that

Burger King IPO– Company is 2nd largest burger chain in India, started operation in 2014 and fastest international brand to have 200 QSR outlets in Inda

Plan is to target 700 outlets in next 5-6 years.

Offer purpose — Offer for sale (360cr) plus fresh issue of 450 cr. To open new stores and pay some part of loan

Key Service domains – 2nd largest burger chain after McDonald

Risks —

Loss making company as of now. Loss of 119+ cr in six months of current FY21, loss of 76 cr in last year FY20

Offer on food tech apps may harm the business wrt competitors plus McDonald, Jubilant food will definitely try to defend the market share

Fast expansion may lead to more losses in coming years but its a double edged sword and can lead to gains as well

Strength

Post COVID –company will have lean structure and business should have good unit economics

Also because of urban developments and more money in hands to spend, culture of eating in QSR will support the company

Fast expansion can help the company in increasing mkt share

Future

QSR is thriving industry and consumption food business will gain. QSR CAGR expected to grow >20% for next 4-5 yrs

Sustainability looks good, McDonald, Dominos, Subway, KFC have already survived and adapted

Valuations

Loss making company and PE is negative

Last 3 Yr Revenue CAGR at 53.4%; Total Debt as of Sep 2020 at 195 Cr

As compared to peers , valuations are reasonable in terms of mcap/sales or mcap/ebitda

Should we apply?

People can subscribe looking at growth prospects

Listing day may see good gains. Recommended to hold long

If available on listing day around 50-70 Rs, one should add more from 3-5 yrs perspective for possibly good gains

Also Read

UTI AMC IPO crisp Summary — Listing with loss as shared

CAMS IPO crisp summary — Listing with 20% gains as shared

Angel Broking IPO crisp summary –Listing with loss as shared

Happiest Minds IPO crisp summary –Listing with substantial gains as shared

In case you have any questions/ queries, please feel free to reach me through Contact Form

Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.

Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.