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.
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%).
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).
For all recommendations, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.