Sapphire Foods IPO: Will it deliver a profitable meal to investors?
Sapphire Foods is focussing on improving profitability and eyes benefits of scale as it ramps up operations. Valuations are at a discount to comparable listed QSR players
November 09, 2021 / 10:20 PM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
Sapphire Foods Ltd (SFL) is one of the two franchisees of the renowned Yum brand (which owns KFC, Pizza Hut and Taco Bell) in India. SFL’s current overall store count is 482 and it operates about 35 percent of Yum’s network in India, with the rest being operated by the recently listed Devyani International Ltd.
The IPO comes at a time when QSR (quick-service restaurant) players are witnessing a strong recovery, following the drop in COVID-19 cases and the...