Dealer Study
March 25, 2021 / 03: 09 PM IST
Ajcon Worldwide IPO sage on Barbecue Nation Hospitality
Barbecue Nation Hospitality Restricted was integrated on October 13, 2006. The corporate owns and operates Barbecue Nation Eating locations, certainly one of India’s leading casual dining restaurant chains and Worldwide Barbecue Nation Eating locations. Additionally they own and operate Toscano Eating locations and You and Barbecue (“UBQ”) by Barbecue Nation. The first Barbecue Nation Restaurant was launched in 2006 by Sayaji Accommodations Ltd. (“SHL”), certainly one of their promoters. The Company launched its first Barbecue Nation Restaurant in 2008, and due to the this reality obtained five Barbecue Nation Eating locations owned by SHL in 2012. As of December 31, 2020, the company has 164 eating locations owned and operated by them which entails 147 Barbecue Nation Eating locations across 77 cities in India, 6 Worldwide Barbecue Nation Eating locations across 4 cities exterior India and 11 Italian Eating locations across 3 metro cities in India of which 9 are operated below the logo name “Toscano” and 1 every below the logo names “La Terrace” and “Collage”, respectively. Worldwide Barbecue Nation Eating locations are as 2 in Dubai, 2 in Abu Dhabi, 1 every in Kuala Lumpur and in Muscat. The corporate has constructed-in digital ecosystem of app, reservation arrangement, supply & loyalty program. They absorb managed risks due to the Covid19 with consistent recovery. The corporate locations a important emphasis on buyer opinions and suggestions and utilize to manufacture buyer suggestions per their internally devised and managed Guest Delight Index (“GSI”)
Valuation and Outlook
On the higher pause of the cost band of Rs. 500, the Company's IPO is valued at 2.5x at FY20 EV/Gross sales. We judge the mission is priced aggressively alive to on the tricky instances faced by Hospitality gamers in COVID‐19 generation. We counsel to "AVOID" the mission due to the the following factors: a) COVID‐19 generation would proceed to place stress on enterprise operations alive to on the most modern spike in COVID‐19 cases leading to localised restrictions, b) Company is loss making in 8MFY21 and final 3 years since FY18 which dents self assurance on future earnings, c) no query the Pre‐IPO placement and mission proceeds from IPO will motivate to meet the liquidity requirements; however, COVID‐19 generation is uncertain and there also can additionally be no assurance that extra liquidity from other sources will likely be on hand to the Company on favourable terms, or at all, particularly the longer the COVID‐19 pandemic lasts or if it had been to worsen.
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