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Barbeque-Nation share price soars 20% on net profit in Jan-Mar quarter of FY21, zooms 56% since listing

In March 2021, Barbeque Nation Hospitality raised Rs 452-crore from the issue and was subscribed nearly 6 times.

Barbeque-Nation Hospitality share price hit 20 per cent limit of upper circuit at Rs 767.50 apiece in intraday deals on BSE after the company posted revenues of Rs 226 crore in Jan-Mar quarter of FY21, a growth of 18.5 per cent on-year. It stood at Rs 190 crore in the same quarter last year. The company’s operating profit or EBITDA stood at Rs 56 crore, up 128 per cent on-year with margins of 24.8 per cent. Barbeque-Nation Hospitality clocked a consolidated net profit of Rs 6.1 crore in the March quarter of FY21 as against a loss of Rs 27 crore in the year-ago period. So far in the day, 1.41 lakh shares have traded on BSE, while 11 lakh units exchanged hands on NSE.

Barbeque-Nation share price zooms 56% since listing

In March 2021, Barbeque Nation Hospitality raised Rs 452-crore from the issue and was subscribed nearly 6 times. Last month, the casual dining company’s shares made a weak stock market debut at Rs 492 per share, as against the IPO price of Rs 500 per share. So far since listing, Barbeque-Nation Hospitality share price has surged 56 per cent. During FY21, the company focused on the delivery vertical and launched a new product called Barbeque-in-a-Box. The product was launched to cater to the rapid progression of the delivery segment during the pandemic.

“The primary driver of the price, according to our study, is the new product addition “Barbeque-in-a-Box” and the declaration by management that the firm plans to extend its network by adding 20 different shops during FY 22. The “Barbeque-in-a-Box” will assist the organization in ensuring safe delivery during the pandemic, which will directly affect the bottom line,” Ashis Biswas, CapitalVia Global Research, told Financial Express Online. The share of revenue from digital platforms increased to 24.7 per cent from 20.1 per cent in Jan-Mar quarter of FY20, while the delivery business grew 6x in the quarter ended March 31, 2021, as compared to the same period last year.

The company opened one new store during the January-March quarter of FY21 and is planning to expand its network by opening 20 new stores during FY22. With the gradual opening of the economy and reopening of our outlets, the company saw a sequential increase in sales from its dine-in and delivery channels. The company expects the delivery segment to grow by 2x in FY22. “We continue to cement our position as a leading casual dining and delivery business with efficient cost optimization, strong cash flow generation, growth in our delivery segment and market penetration strategy,” Rahul Agrawal, CEO, Barbeque-Nation Hospitality, said.

(The stock recommendations in this story are by the respective research and brokerage firm. Financial Express Online does not bear any responsibility for their investment advice. Please consult your investment advisor before investing.)

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