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Last Updated : Jun 09, 2017 10:55 AM IST | Source: Moneycontrol.com

Buy Westlife Development; target of Rs 250: Axis Direct

Axis Direct is bullish on Westlife Development has recommended buy rating on the stock with a target price of Rs 250 in its research report dated May 18, 2017.

 
 
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Axis Direct's research report on Westlife Development


Q4 sales grew 7.5% YoY. SSSg grew modest 1% YoY on lower footfalls at high street and malls due to an early end to EoSS. Gross margin improved 40bps YoY to 61.3% but EBITDA margin declined 60bps YoY on higher staff costs (up 140bps YoY). For FY17, sales grew 12% (on 4% SSSg) and EBITDA grew 10% (EBITDA margin declined 10bps to 5.1%).


Outlook


We cut our FY18/19E EBITDA estimates by 9% each. However, we remain positive on Westlife as it continues to innovate and prepare itself for an uptick in consumer sentiment. Despite upgrading consumer experience, it continues to deliver strong value proposition. Maintain BUY with DCF-based revised TP of Rs 250 (Rs 260 earlier).


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First Published on May 22, 2017 04:04 pm
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