Shares of Sapphire Foods surged over 12 percent on September 24 to hit a fresh record high of Rs 401 on NSE, driven by heavy volumes. A large trade occurred in the counter with 8.5 lakh shares or 1.3 percent equity changing hands for Rs 30.5 crore at a price of Rs 355 per share.
So far in the day, a total of 61 lakh share of the company traded on BSE and NSE combined, compared to the one-month average trading volume of 8 lakh shares.
At 11:33 am, Sapphire Foods shares were trading over 9 percent higher at Rs 384.85 on NSE. The stock has rallied 36 percent so far this year, outperforming Nifty's returns of 19 percent. In the past 12 months, the counter has risen 31 percent. In comparison, Nifty rose 31 percent during this period.
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Sapphire Foods' stock bagged several bullish calls from brokerages after the company reported in-line earnings for the quarter ended June 2024. Analysts remained positive on the stock even as the Pizza Hut and KFC operator's consolidated net profit fell 68 percent on-year to Rs 8.52 crore in Q1 FY25.
The Yum Brands franchisee's revenue from operations, however, rose 10 percent YoY to Rs 718 crore. The disappointing earnings were triggered by headwinds faced by the QSR industry which continues to struggle with weakness in unit economics across dine-in and delivery formats.
Motilal Oswal maintained its cautious stance on QSRs for the near term due to the ongoing demand challenges. However, the brokerage reiterated its buy rating Sapphire Foods stock with a target price of Rs 1,850.
Meanwhile, JM Financial stated that it likes Sapphire’s approach to go aggressive on a more resilient KFC and be calibrated in Pizza Hut; green shoots in Sri Lanka also augur well.
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