Neutral Barbeque Nation Hospitality; target of Rs 1120: Motilal Oswal

Motilal Oswal's research report on Barbeque Nation Hospitality

While BARBEQUE’s 2QFY23 results were broadly in line with estimates on sales and EBITDA, the extent of sequential ADS dip over 1QFY23 levels was surprising. Delivery sales declined more than expected and margin recovery trajectory going ahead would be slower than expected earlier. Valuations are fair at 16.6x FY24E pre-Ind AS EV/EBITDA.

Outlook

We reiterate our Neutral rating on the stock with a TP of INR1,120 based on 17x Sep’24 EV/EBITDA.