Street View: India's Sapphire Foods to struggle with demand in near term

Sapphire Foods India

29/10/2024 07:00

** Shares of Sapphire Foods India  SAPI.NS  drop 6.6% to 320
rupees
    ** Operator of Pizza Hut and KFC restaurants posted surprise
quarterly loss
    
    NO NEAR-TERM DEMAND PICK-UP 
    ** Goldman Sachs ("buy", cuts PT to 400 rupees from 420
rupees) says KFC same store sales growth unlikely to recover
sharply in the Dec-qtr
    ** Motilal Oswal ("buy", raises TP to 415 rupees from 370
rupees) does not foresee any near-term respite in profitability
but expect gradual stability in growth in second half of FY
    ** Emkay Research ("add", raises PT to 375 rupees from 340
rupees) though, expects a turnaround in FY26; says sluggish
trends in-line with broader slowdown
    ** Centrum ("sell", trims PT to 310 rupees from 326 rupees)
also foresees "short-term challenges" from quick service
restaurants (QSR) peers

 (Reporting by Hritam Mukherjee in Bengaluru)
 ((Hritam.Mukherjee@thomsonreuters.com;))