By Malvika Gurung
Investing.com -- The fast-food restaurant chain Burger King India Ltd (NS: BURG ) has posted a strong recovery in the September 2021 ending quarter. Its revenue from operations has grown almost 154% YoY and 64% QoQ at Rs 245.4 crores for the quarter, due to an increase in dine-in sales as Covid restrictions across the country ease.
The sales of the burger giant are nearing the pre-Covid levels in October, and the company’s performance is expected to improve further.
The brokerage firm Credit Suisse (SIX: CSGN ) has initiated an ‘Outperform’ call on Burger King with a target price of Rs 215/share, which is an upside of 39.4% from its current price of Rs 154.2/share.
Analysts at Credit Suisse are bullish over Burger King to remain among the fastest-growing Quick service restaurant or fast food restaurant chains in India.
It believes that as soon as the out-of-home consumption of the burger chain normalises and its position on the Indonesian acquisition clarifies, Burger King’s recent underperformance will dissipate.
Additionally, the brokerage expects its QSR to grow by 19% CAGR, and the stock could report a positive net profit in FY24e for the first since its launch in India.
Brokerage Khambatta Securities too recommends buying the stock and has set a target price of Rs 217/share.
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