We interacted with the management of Specialty Restaurants (SRL) at an investor conference held by us recently. Following are the key takeaways: Market conditions are tough, but a ray of hope in recent months: SRL, a fine dining company, operates 123 restaurants across India, Bangladesh, Qatar and Tanzania. The company has secured a foothold in almost all the segments of food service industry through its various brands, starting from Full Service Restaurants to QSR (Quick Service Restaurants), Caf and Bars and Bakery & Confectionery, thus covering the entire spectrum of the pyramid. On account of various macro...

Mainland Asia China Kitchen witnesses good traction from customers which is refreshed brand from Mainland China: The company's flagship brand Mainland China has been refreshed and launched as Mainland Asia China Kitchen which offers diverse menu with combination of Chinese and South East Asian cuisine with 60:40 respectively. Mainland Asia China Kitchen has churn ratio of close to 2 which is way higher than the company's other brands.

Speciality Restaurants (SRL) reported 14% yoy and 18.8% yoy growth in revenue and earnings, respectively in its 1QFY16 result. The earnings growth was supported by OPM expansion of 38bp yoy. We haven't changed our estimates post the result and continue to maintain our HOLD recommendation with Target Price of Rs164....