Westlife Foodworld Ltd. share price target

We recently hosted Westlife Foodworld’s (WESTLIFE) management at our Ideation Conference to gain insights into the company's current business environment and future plans.

With a 21% upside potential from the CMP, we maintain our BUY rating on the stock.

We upgrade Westlife to BUY (from Add), as it offers an improving growth/margin trajectory at an attractive entry point.

With an 11% upside potential from the CMP, we maintain our BUY rating on the stock.

Slowdown persists; store additions continue

Westlife Foodworld (WLDL) reported flat YoY sales of INR6.2b in 1QFY25. Its sales were hit by a 6.7% YoY decline in same-store sales (est. -5.0% YoY).

Revenue was flat YoY (+10% QoQ) while SSSG declined 6.7% YoY impacted by general slowdown in consumption and subdued on-premise sales. Revenue growth in on-premise and off-premise businesses stood at -3%, 6% YoY.

We retain REDUCE on WESTLIFE and Jun-25E TP of Rs875, due to a lackluster Q1 (9-10% EBITDA miss) and sequential SSG moderation (-6.7% vs. -5% in Q4).

We maintain our BUY rating on the stock.

Near term demand headwinds; long-term targets intact

With a 12% upside potential from the CMP, we maintain our BUY rating on the stock.

Westlife Foodworld's print was lower than our estimates. Revenue grew 7% YoY, while SSSG stood at 1%, which grew on a high base of 40% SSSG growth

Sluggish demand in the near-term; long-term targets intact

Westlife Foodworld’s (Westlife) result was soft (1% SSSG, 7% YoY revenue), impacted by consumption slowdown and high-base. However, on 4Y CAGR basis; revenue growth at 12% is still ahead of competition (JUBI at 8% CAGR). Revenue growth in both on premise and off-premise segments remains steady (at 7%YoY each).