Westlife Foodworld Ltd. share price target

WFL to add 45-50 stores in FY26 with a target of 580-630 stores by CY27 sales/store declined 5.8% YoY and 13% QoQ as demand scenario remains challenging 2) muted guidance for SSG for FY26 despite low base of FY25 and more focus on CY27 guidance 3) limited pricing power as sustained competitive intensity is likely to cap price hikes. Although operational efficiencies will neutralize RM inflation, higher overheads on new stores will...

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.

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

Near term demand headwinds; long-term targets intact

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).