Neutral on Westlife Development, target price Rs 480: Motilal Oswal

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Neutral on Westlife Development, target price Rs 480:  Motilal Oswal


Motilal Oswal has neutral call on Westlife Development with a target price of Rs 480. The current market price of Westlife Development Ltd. is Rs 456.

Westlife Development Ltd., incorporated in the year 1982, is a Mid Cap company (having a market cap of Rs 7050.60 Crore) operating in Tourism & Hospitality sector.

Financials
For the quarter ended 31-12-2020, the company reported a Consolidated sales of Rs 324.00 Crore, up 56.57 % from last quarter Sales of Rs 206.94 Crore and down -24.78 % from last year same quarter Sales of Rs 430.72 Crore Company reported net profit after tax of Rs .11 Crore in latest quarter.

Investment Rationale
While the brokerage likes the structural opportunity for WLDL, valuations at 22.1x FY23E EV/EBITDA seem fair from a one-year perspective. This is because of the company’s higher dependence on dine-in which has delayed the recovery compared to JUBI. Valuing the stock at 22x FY23E EV/EBITDA (~10% discount to JUBI), it arrives at TP of INR480.

Promoter/FII Holdings
Promoters held 59.1 per cent stake in the company as of Dec 30, 2020, while FIIs held 9.6 per cent, DIIs 20.4 per cent and public and others 10.9 per cent





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