The thesis in nutshell is as follows:
- Its a proxy play for the QSR Industry expected to grow at 20% CAGR
- Big clientale names: CCD, Subway, Dominos, Burger Singh, Wok express etc.
- Capacity utilizartion is 68% (Non-Veg) 27% (Veg)
- Marging is sustainable and expected to improve from next year.
- Newly annouced entry into North India QSR market.
- Good interest from investors. Already 17.67% is held by DIIs. Low float may work for it.
Anti-Thesis pointers:
- Competition from both organized and unorganized players may erode the margins. (H1 OPM was 9%)
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