Buy Westlife Foodworld; target of Rs 875: Emkay Global Financial

Emkay Global Financial is bullish on Westlife Foodworld has recommended buy rating on the stock with a target price of Rs 875 in its research report dated January 29, 2025.

Broker Research

February 03, 2025 / 21:09 IST

BUY

26 Aug, 2025 12:21

Volume

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Emkay Global Financial's research report on Westlife Foodworld

We upgrade Westlife to BUY (from Add), as it offers an improving growth/margin trajectory at an attractive entry point. Q3 EBITDA came at a marginal 4-5% miss on higher marketing spends, but strong initiatives toward enhancing its Value (meals), Chicken (South), and Café offerings should drive better growth/margins here-on. The company’s strategy is seeing initial signs of success, as Q3 SSG of ~3% was a mix of strong traction across specific regions and a lull across the rest, where it is taking corrective actions. Despite a muted FY24/25, the company upheld its 5-Y Vision 2027 which implies topline CAGR of 17-22%, along with annual margin gain of 150-200bps over FY25-28. Given historical precedents of strong turnarounds,

Outlook

We currently factor in the lower end of the outlook (35% EBITDA CAGR) and upgrade to BUY. We make no material earnings revision, and maintain TP at Rs875 (33x Dec-26 EBITDA).

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