Barbeque Nation Q1 Results Review - Growth Remains Weak; Margin Improving: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Barbeque Nation Hospitality Ltd. revenue declined 6% YoY, hit by store closures (18 stores closed in FY24 and two in Q1 FY25) and general election-related restrictions. The international business was hurt by the floods in Dubai. Same-store sales growth remained weak, reporting 7.4% YoY decline in Q1 FY25 versus 7.7% decline in Q1 FY24 and 1.4% growth in Q4 FY24. Dine-in revenue and delivery decreased 6% and 3% YoY, respectively.Gross margin remained strong and expanded 410 bp YoY to 68.1%. ROM improved 200 bp YoY to 13.8%. The cost-control initiatives helped in improving margins, which offset the adverse operating leverage pressure on margin. Ebitda margin improved 220bp+ YoY to 16.6% (estimate 17.0%). The company posted a PBT loss of Rs 55 million.Management is looking to add 25-30 stores in FY25 and 100 stores over the next three years. BBQ Nation’s current valuations at 19.1 times FY25E and 15.5 times FY26E pre-Ind-AS enterprise value/Ebitda are comfortably positioned. However, we are watchful of its operating margin profile in FY25 amid the challenging demand environment.We reiterate our 'Neutral' rating on the stock with a target price of Rs 625, based on 15 times June 26E Pre Ind-AS enterprise value/Ebitda..Click on the attachment to read the full report:.Zomato Q1 Results: Profit Up 45%, Beat Estimates.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Barbeque Nation Q1 Results Review - Growth Remains Weak; Margin Improving: Motilal Oswal

The company’s PBT margin profile is weaker than QSR players, therefore, despite a comfortable position on valuation, the brokerage remains watchful of the QSR's operating margin delivery in FY25.

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Barbeque Nation Q1 Results Review - Growth Remains Weak; Margin Improving: Motilal Oswal

The company’s PBT margin profile is weaker than QSR players, therefore, despite a comfortable position on valuation, the brokerage remains watchful of the QSR's operating margin delivery in FY25.

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