Motilal Oswal has given Buy on the stock with a revised price recommendation for Barbeque Nation Hospitality with a target price of Rs. lal Oswal is bullish on Barbeque Nation Hospitality has recommended buy on the stock with a revised price target (PT) of Rs. 1600 in its research report issued on Feb 04, 2022


Although the company raised prices by 5-6% to beat commodity inflation, gross margin expanded by 20bp YoY. The gain of 180bp YoY in operating margin was largely led by operating leverage. While the near term headwinds on account of the Omicron COVID wave will impact its 4QFY22 performance, its medium term prospects remain intact. With its unique offerings and value proposition, BARBEQUE is well placed to deliver sustainable growth in both dine-in and delivery, as highlighted in our recent initiating coverage note on the company. Considering the CDR format of the business, we do not expect it to trade at a premium to QSRs. Current valuations at 18.2x FY24E EV/EBITDA limit any upside, hence we maintain our Neutral rating.

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