Moneycontrol PRO
Upcoming Webinar:Join us for 'The Future Techshot' on Sept 22, 10:30am to gain insights into role of tech in streamlining businesses. Register Now!

Buy Burger King India target of Rs 250: Prabhudas Lilladher

Prabhudas Lilladher is bullish on Burger King India has recommended buy rating on the stock with a target price of Rs 250 in its research report dated May 27, 2021.

June 10, 2021 / 11:23 AM IST
  • bselive
  • nselive
Todays L/H

Prabhudas Lilladher's research report on Burger King India

We are increasing our DCF based target price to Rs250 (Rs221 earlier) as we factor in 1) BK Café launch by Jan-22 (75 cafés by FY23) and 2) superior margin delivery and upgraded guidance 3) success of BK App (200% growth) and 4) sustained innovations with launch of stunner Menu at price point of Rs50 and Rs70. We believe that 1Q would be impacted as Burger king as 55% stores in malls and another 15% in transit locations (Metros, IT parks etc.), however situation is far better than 1Q20 given building traction with convenience channel. Burger chains as a whole will emerge stronger from the Pandemic given 1) Closure of more than 25-30% eateries due to Pandemic 2) Increased consumer focus towards health and hygiene measures and 3) Low penetration. Burger king has huge competitive advantage to capitalize on emerging growth opportunities given 1) Target to open 320 stores by FY22 and 700 by CY26 (265 as on FY21), 2) Launch of Value proposition strategy, 3) fixed royalty at 5% 4) cluster based approach with faster scalability and operating leverage 5) Launch of BK café by end of FY22. We estimate CAGR of 34.5% in sales over FY21-23.


We estimate PAT breakeven by FY23 and strong profit growth post FY24. We believe margin guidance can see upside if BK café is a success. Maintain Buy with DCF based target price of Rs250 (Rs221 earlier).

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: May 28, 2021 12:42 pm

stay updated

Get Daily News on your Browser
ISO 27001 - BSI Assurance Mark