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EUR 88.49
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The company had tried to list earlier in FY17 but was held back due to regulatory reasons. Hence, one has a longer financial history available for the company.
The number of restaurants operated by the company has increased by 4x over FY13-19. This has led to strong revenue growth. However, EBITDA and PATMI have lagged revenue growth even though the cost of foods and beverages as a percentage of revenue has been declining. The pressure of margins appears to stem from rising employee costs.
Even on a per restaurant basis, revenue, EBITDA and operating cash flow has been declining. Furthermore, the company recently acquired a group of Italian restaurants in order to diversify its offering. The last time it tried to diversify, it didn’t end up doing too well.
Barbeque Nation Pre-IPO - Not really a feast
Barbeque Nation (BN) aims to raise around US$150m in its India IPO. It owns and operates casual dining restaurants under the same name, Barbeque Nation Restaurants. As of Nov 2019, it had 138 restaurants in 73 cities in India and seven international restaurants in three other countries.The company had tried to list earlier in FY17 but was held back due to regulatory reasons. Hence, one has a longer financial history available for the company.
The number of restaurants operated by the company has increased by 4x over FY13-19. This has led to strong revenue growth. However, EBITDA and PATMI have lagged revenue growth even though the cost of foods and beverages as a percentage of revenue has been declining. The pressure of margins appears to stem from rising employee costs.
Even on a per restaurant basis, revenue, EBITDA and operating cash flow has been declining. Furthermore, the company recently acquired a group of Italian restaurants in order to diversify its offering. The last time it tried to diversify, it didn’t end up doing too well.
Underlying
Barbeque Nation Hospitality
Provider
Aequitas Research
Aequitas Research is a leading ECM research firm with a focus on IPOs and placements/follow-on offerings across the Asia Pacific with deal size of over USD100m.
Since 2015, we have covered 400+ IPOs and 450+ placements with a hit rate of 73% and 65%, respectively. We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic analysis.
Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis. We also provide a more quant driven analysis on placement/follow-on offerings.
Markets that we cover include:
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Sumeet Singh
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