Buy Westlife Development, target price Rs 840: Emkay Global Financial Services

Emkay Global Financial Services has buy call on Westlife Development with a target price of Rs 840. The current market price of Westlife Development Ltd. is Rs 726.6. Time period given by analyst is 1 year when Westlife Development price can reach defined target.

Westlife Development, incorporated in the year 1982, is a Mid Cap company (having a market cap of Rs 4940.14 Crore) operating in Tourism & Hospitality sector.

Financials

For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 577.62 Crore, up 7.02 % from last quarter Total Income of Rs 539.74 Crore and up 48.34 % from last year same quarter Total Income of Rs 389.38 Crore. Company has reported net profit after tax of Rs 31.54 Crore in latest quarter.

The company’s top management includes Mr.Amit Jatia, Ms.Smita Jatia, Mr.Akshay Jatia, Mr.B L Jatia, Mr.Manish Chokhani, Mr.P R Barpande, Mr.Tarun Kataria, Ms.Amisha Jain. Company has B S R & Associates LLP as its auditors. As on 30-06-2022, the company has a total of 16 Crore shares outstanding.

Investment Rationale
Emkay is bullish on Westlife Development given its best-in-class execution in the recent past and further ramp-up potential of chicken/meals/café/dessert categories. The brokerage hence sees scope of upward revision in revenue guidance.

Promoter/FII Holdings
Promoters held 56.98 per cent stake in the company as of 30-Jun-2022, while FIIs owned 9.47 per cent, DIIs 23.34 per cent.