iifl-logo-icon 1
IIFL

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

  • Open Demat with exclusive Advice & Services
  • Get a dedicated Relationship Manager to help you grow your wealth
  • Exclusive advisory on 20+ trading & wealth-based investment options
  • One tap Investments, Automated trading & much more
  • Minimum 1 lakh margin required
sidebar image

Hopeful of demand recovery in retail sector: IIFL Securities

16 Feb 2024 , 10:31 AM

Analysts of IIFL Securities hosted Devyani International (DIL) and Sapphire Foods at the IIFL’s 15th Global Investor Conference in Mumbai. While management of both the companies indicated that QSR space still suffers from weak demand, they were confident of delivering better Same store sales growth (SSSG) as the overall macro environment gets better and the consumer sentiment improves. While fried chicken category is the least affected driving the overall growth for both the companies, the pizza space remains the most impacted. Analysts of IIFL Securities believe, a gradual recovery should follow through as consumer sentiment improves, maintaining a BUY rating on both the stocks. 

Overall macro environment still tough: 

While the overall macro still not favoring the QSRs, DIL mgmt. was of the view that aggregators like Zomato and Swiggy’s growth is relatively better as they have a bigger universe in terms of restaurants, cuisines and higher coverage of cities which evens out the growth, while Sapphire mgmt. believed that such growth is mainly coming from cloud kitchens which may not be economically viable in medium to long term. 

KFC an outlier: 

KFC for both the brands have been the savior in the current macro context, while Sapphire has been an outlier with better margins. DIL mgmt. mentioned that despite weak demand sentiment, KFC performance is relatively better as there is no other better alternative available this space expect Popeyes which has only 25 odd stores. Sapphire would focus to grow the fried chicken relevance through menu innovation and advertising and don’t expect much margin improvement. 

Pizza Hut bulldozed by high competition: 

DIL mgmt. mentioned that Pizza continues to remain more impacted considering the increased competition as the post covid competition which got eliminated is creeping back, despite this they would continue to open new stores considering a longer term view in mind. While Sapphire mentioned that they lowered their guidance of doubling PH store count from CY21 levels by 1 year (earlier 3 years vs 4 now) and would continue to focus on 20 minutes delivery were they are witnessing a continuous improvement

Related Tags

  • Retails
sidebar mobile

BLOGS AND PERSONAL FINANCE

Read More
Knowledge Centerplus
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Securities Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Knowledge Centerplus

Follow us on

facebooktwitterrssyoutubeinstagramlinkedin

2024, IIFL Securities Ltd. All Rights Reserved

ATTENTION INVESTORS
  • Prevent Unauthorized Transactions in your demat / trading account Update your Mobile Number/ email Id with your stock broker / Depository Participant. Receive information of your transactions directly from Exchanges on your mobile / email at the end of day and alerts on your registered mobile for all debits and other important transactions in your demat account directly from NSDL/ CDSL on the same day." - Issued in the interest of investors.
  • KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.
  • No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."

www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.

RISK DISCLOSURE ON DERIVATIVES
  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  • On an average, loss makers registered net trading loss close to Rs. 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.
Copyright © IIFL Securities Ltd. All rights Reserved.

Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248

plus
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.

closeIcon

Get better recommendations & make better investments

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp