Lets see how are the results tomorrow. If they keep a tab on expansion, they might report good profits.
Latest Annual Report
5064b505-f215-4701-ba15-b493df80981f.pdf (7.0 MB)
Q1FY23 Results
e4cb7add-3381-469c-9c62-8c630a5a7f88.pdf (2.8 MB)
New investor presentation (in very very long time) covering the future plans.
Most exciting is to triple the revenues from here in 6 years and maintaining recent run-rate of EBIDTA Margin of 25%+
https://www.bseindia.com/xml-data/corpfiling/AttachLive/5bcdd929-494f-452d-a81a-c935eecac31d.pdf
We believe the food sector will witness a robust sales growth in the high teens over the next few year - Source: Speciality restaurants Annual report.
Short and Crisp video on Speciality restaurant from Avinash Gorakshakar. Link below.
https://twitter.com/AvinashGoraksha/status/1667154639010111490?t=kj5Iw_DAlJuEEHM4IFKWRg&s=19
Currently ruling below 200 DMA at 205. Today Annual report also released …
https://www.bseindia.com/xml-data/corpfiling/AttachLive/504b9f70-313e-4ee6-84aa-a4a5c0f9421a.pdf
Curious to know why Manufacturing Cost of Speciality Rest is shown 0% and i guess that same expenses is shifted to Other expenses.
Various expenses Figures are shown in % to Sales proportion.
CRISIL Ratings Limited has upgraded its outlook on total bank facilities of Rs. 10 Crore of the Company, the long term rating to “CRISIL A-/Stable” (upgraded from ‘CRISIL BBB+/Positive’) and the short-term rating to “CRISIL A2+” (upgraded from ‘CRISIL A2’).
Stable Fine dining restaurant company.
Gud set of numbers from speciality restaurants
@mohammadarshad27 as per screener the EPS, Net Profit etc are down by ~10% and the sales is up only by 6% YOY, how can we consider this as good numbers, can you please explain, I am new to the market.
Request you to view consolidated results on screener. PAT is not right way to judge the company, as more restaurants opened, means more leases which leads to higher depreciation. EBITDA is the right way to look at it, where YoY margin has fallen from 24% to 20%. Revenue from operations has gone up 12% YoY, first time I have seen their quarterly sales exceed 115 cr. See the presentation uploaded in Apr 2023. I expect future prospects to be bright.
Disc- heavily invested in our family office at avg cost of 210 over last 1 week.
Investors presentation’s with detailed segment revenue https://www.bseindia.com/xml-data/corpfiling/AttachLive/2fba6ff5-3f47-4ad5-a844-be400c108ff9.pdf
Latest interview on cnbc by Anjan Chatterjee, CMD Speciality Restaurants.he hinted about acquisitions of restaurant chain in near future
https://youtu.be/fFHPCCI8uxk?si=W63aFnOugaOenyHA
I am seeing numbers from revenue side only, which has shown good growth
Anjan Chatterjee mentions an upcoming acquisition in the CNBC interview. Any guesses on who the target is?
What we know for sure (from Anjan in the interview) is
- It’s a Chinese restaurant chain based in India that is profitable and not more than 500 Cr in size but not very small as well
- It’s a well-known brand as he mentioned both the anchors would know of it
- Someone experiencing growth troubles as he said the reason to join the force is to figure out growth and scale from Speciality
Here are some of my extrapolations from his statements -
- On the size I would guess the number to be 100-250 Cr with a turnover of maybe 20-50 Cr to make sense to Speciality’s scale
- Present across multiple cities would be preferred by Speciality over a chain concentrated in only one Geography. If it’s a single geography, then that’s Mumbai, as both anchors wouldn’t know of it otherwise (I am assuming CNBC’s anchors are based out of Mumbai)
My pick is China Gate which is popular in Mumbai. Another possibility can be Wow!China but that’s a slim chance as it’s part of the much larger Wow!Momo group and is comparatively large.
Please share your thoughts. What other possible chains do you think can be targeted based on the above points ?
Obviously, I am highly probably going to be wrong in my guess and please do your own due diligence if you are looking to invest.
Disc - Not Invested, tracking
Could be Royal China also, fits his premiumisation model
Any idea why the management doesn’t want to give out cash as dividends?
This acquisition strategy seems iffy and feels like empire building. It may or may not work.
I guess this is one of the reasons the stock trades so cheap.
Yes agreed, that’s a strong possibility. Ticks all the boxes off
Speciality Restaurants -
Company’s brands - Revenue contribution
Mainland China/Asia Kitchen ( 24 units ) - 42 pc
Oh Calcutta ( 9 units ) - 13 pc
Sweet Bengal ( 42 units ) - 10 pc
Cloud Kitchens ( 14 units ) - 14 pc
Sigree Global Grill ( 03 units ) - 7 pc
Haka ( 4 units ) - 5 pc
Rest is contributed by smaller brands like - Cafe Mezzuna, Hoppipola ( Both - Italian / Continental ) etc
Q3 FY 24 results -
Revenues - 122 vs 105 cr
EBITDA - 29 vs 27 cr
PAT - 13 vs 15 cr
Dine-in sales @ 78 vs 75 pc YoY
Delivery sales @ 22 vs 25 pc YoY
Compression in margins due opening of new Restaurants and the resultant increase in costs
Company opened 04 new stores in Q3. Intend to open 02 more stores in Q4
Company raised 127 cr in Q1 this yr. Intend to renovate / reinvigorate old stores and for acquisitions ( profitable Chinese restaurant chain - already identified ). Company should announce it anytime soon
Disc: hold a tracking position, biased, not SEBI registered
View : if the company can get to a base PAT of say 40 cr/yr and grow from there, it would be a very nice re-rating candidate with current Mkt Cap at 1250 cr