Asia Pacific Region - Oct 27, 2023

Equity Research Report

Westlife Foodworld Ltd.
Finished last year on a robust note

About the Company

Reco : XXX
CMP : Rs 823 Westlife Foodworld Limited (WFL), formerly known as Westlife Development
Target Price : Rs XXX Limited, focuses on establishing and operating McDonald’s restaurants
Potential Target : +X% across West and South India, through its wholly-owned subsidiary Hardcastle
Restaurants Pvt. Ltd. (HRPL). One of the fastest-growing players in India’s
quick service restaurant (QSR) sector.
Stock data (as on Oct 27, 2023)
Nifty : 19,044 WDL was incorporated on October 30, 1982. The Bombay High Court
52 Week H/L (in Rs) : 1,024 /639 approved the Scheme of Arrangement between the Company and its
Market Cap (in Rs Crs.) : 12,858 subsidiaries in 2013, making Hardcastle Restaurants Private Limited the sole
Outstanding Shares (Cr.) : 15.69 direct subsidiary of the Company.
Dividend yield (%) :-
In 1996, the Company started its first Indian restaurant in Bandra. Currently
NSE Code : WESTLIFE company manages a total of 319 McDonald's restaurants and 223 McCafé
outlets in the West and South India regions, located in areas such as malls,
Relative Stock Performance (1Y) high streets, shopping complexes, and residential areas, making them easily
accessible and popular among customers. With approximately 10,000
Nifty WESTLIFE employees, the company has a strong presence in the region.

Q2 FY23 – Highlights

• Total revenue in FY21 was 9860.31 million, and it has increased to

15764.90 in FY22, showing a significant growth of 2,278 as on sep23. The
Jul-23
Apr-23
Nov-22

May-23
Jun-23

Aug-23
Dec-22
Jan-23
Feb-23
Mar-23

Sep-23
Oct-22

QoQ sales growth has been recorded at 7%. According to the

management, the company is expected to finish FY23 on a positive note.

Shareholding Pattern ( Sep 30, 2023) • Restaurants' operating margin has increased significantly. In FY21, it was
Promoter : 56.22% 7.73%, in FY22 it was 19%, and as of Q2FY23, it stands at 23.2%.
FII : 10.44%
• The EBITDA for FY21 was $39.10 million, and it grew to $2170.10 million
DII : 23.66% in FY22. Additionally, the company has experienced significant growth in
Public : 9.37% EBITDA, with a current value of $3931 as of September 23rd, and a QOQ
other : 0.31% EBITDA margin growth of 63.53%.

Absolute Return • The number of outlets in FY22 is 326 and the management has added 31
1 Year : 13.17% more outlets. They are highly confident in achieving an additional 20 to
30 outlets by the end of the year.
3 Year : 119.44%
5 Year : 156.04%
Financial Summary
Revenue Growth
Rs. (in mn) FY23 FY24E FY25E
Sales % Growth YOY
Net Revenue 2,278 1,966 2,137
60%
2400 70% YoY Growth (%) 8.0% -13.7% 8.7%
45%
50%
1900 24% EBITDA 704 566 633
10% 30%
1400 EBITDA(%) 30.9% 28.8% 29.6%
10%
900
-10%
PAT 421 286 293
-36% YoY Growth (%) 8.3% -32.0% 102.2%
400 -30%
-100 -50% ROE 74.37% 52.84% 53.73%
2019 2020 2021 2022 2023 EPS ₹ 27.0 ₹ 18.4 ₹ 18.7
Prepared by: Rahul Barman EV/EBITDA 31.0x 18.9x 1.3x
Guided by: CA Parth Verma
(The Valuation School) P/BV 18.8x 17.3x 19.5x
Asia Pacific Region - Oct 27, 2023

Westlife Foodworld Ltd.

Global Economic Overview Global GDP Growth rate

The global economy saw a strong recovery in 2021 after the

United states
Covid-19 pandemic caused a severe downturn in 2020. The
global GDP grew by 6.1% in 2021, compared to a contraction
of 3.3% in 2020. Thanks to the increasing availability of Germany

vaccines, many restrictions were lifted, triggering a dynamic

upswing. The Emerging Market and Developing Economies Japan
grew by 6.8%.
The recent conflict between Israel and Hamas was widely United kingdom
covered in the news, and it is a well-known event. But the
report published by IMP in early October did not take into
Chaina
account the impact of the Israel-Hamas war. However, any
kind of geopolitical tension or war-like situation can have an
effect on the entire world. India

Currently, According to the latest data, the WPI Food Index,

which includes Food Articles from the Primary Articles group Russia
and Food Products from the Manufactured Products group,
decreased from 186.1 in August 2023 to 177.8 in September Nigeria
2023. Additionally, the year-over-year rate of inflation based
on the WPI Food Index decreased from 5.62% in August to
1.54% in September. 2022A 2023P 2024P

Source: IMF, Trading Economics Source: IMF, Trading Economics

India GDP QOQ %

Sep-23 4.90%
Indian Economic Overview
Jun-23 2.10%
In 2022, India's GDP growth was 9.1%. According to the IMF
2023, the projected real GDP (% Change) for 2023 is 6.3%,
which is 40 basis points higher than its earlier forecast in Mar-23 2.20%
April. While the RBI is projecting growth at 6.5%, the latest
leading indicators suggest the possibility of the economy Dec-22 2.60%
growing at a faster pace. The projected consumer prices (%
Change) and country population 1.42 million.
Sep-22 2.70%

GDP per capita PPP in India is expected to reach 7543.00 USD

by the end of 2023, according to Trading Economics global -0.60%
Jun-22

macro models and analysts' expectations. In the long-term,

India's GDP per capita PPP is projected to trend around -2.00%
Mar-22
8034.00 USD in 2024 and 8572.00 USD in 2025.
Dec-21 7.00%
The number of registered companies in India has been on
the rise. Around 93,000 companies were registered in the
first half of 2023-24 compared to 59,000 five years ago. The Sep-21 3.30%
average daily registration of new companies increased to 622
in 2023-24, an increase of 58% from 395 in 2018-19 Jun-21 6.20%

Mar-21 5.20%

Source: IMF, Y charts RBI Source: Y Charts

Asia Pacific Region - Oct 27, 2023

Westlife Foodworld Ltd.

Food & Restaurant Industry

The restaurant industry is broadly classified into :

❑ QSR (Quick Service Restaurant) - Quick service restaurant is categorised by fast service, a casual atmosphere, limited
seating and a focused menu. In other words, QSRs (Quick Service Restaurants) offer readily available meals with a delivery
time of just 10-15 minutes. The prices of these meals typically range from 30-100,150rs, which is considerably less
expensive compared to fine dining where prices can be 400-500rs. QSR focus on
• Simple Menu
• Low Price
• No table service
• Self-service mode
• Consistent product
• Late Opening

❑ Fine Dining: A grand structure with a 5-star rating offers a super luxurious customer experience where every need of
the customer is taken care of. The meals are priced at a premium range of 500-600, but it's worth the cost for the
great experience they offer. Such restaurants are limited to a maximum of 2-3 in a city, as the experience they offer
comes at a high price point. They usually focus on
• Customer experience
• High Quality
• Luxury experience
• Grand structure

❑ Fast Casual: fast casual is a hybrid of fine dining and QSR. Guests may order at the counter and take their seats, with
an employee delivering their food 5-10 minutes later.

SWAT Analysis of the QSR Industry :

❑ Strength: taste, young population, increase in smartphone uses, brand loyalty, efficient supply chain management

❑ Challenges: Real state pricing, perception of junk food, High price, Logistics risk (supply chain), Maintaining high-quality
standards, technological, Market risk, maintaining hygiene and safety, a suitable location.

❑ Opportunity: Increasing food safety and awareness, Growth in technology - enable service, Penetration into Tier II & III
Cities.

❑ Threats: Social–economic and political uncertainty, regulatory risk, inflation.

Exhibit: 1 Players in the Indian market :

Particular Revenue Stores Per store Revenue Gross Margin EBITDA margin Net profit margin
Jubilant Food. 5,237 1816 2.9cr 76% 19% 4%
Devyani Intl. 3,139 1224 2.6cr 70% 21% 6%
Westlife Food 2,354 357 6.6cr 70% 16% 4%
Sapphire Foods 2,373 700 3.4cr 67% 19% 9%
Source: Annual Report
Asia Pacific Region - Oct 27, 2023

Westlife Foodworld Ltd.

Products :

Source: Westlife Investor presentation

Exhibit : 2 Key variables matrix

Comps Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Revenue jublient ₹ 2,583 ₹ 3,018 ₹ 3,563 ₹ 3,927 ₹ 3,312 ₹ 4,396 ₹ 5,158
growth - 16.84% 18.05% 10.22% -15.67% 32.74% 17.34%
McD ₹ 931 ₹ 1,135 ₹ 1,402 ₹ 1,548 ₹ 986 ₹ 1,576 ₹ 2,278
growth - 21.93% 23.54% 10.40% -36.29% 59.88% 44.51%
devyani ₹ 1,048 ₹ 1,111 ₹ 1,311 ₹ 1,516 ₹ 1,135 ₹ 2,084 ₹ 2,998
growth - 6.02% 18.01% 15.70% -25.16% 83.64% 43.84%
Ebitda Margin jublient 27.17% 33.80% 35.27% 41.27% 37.60% 40.78% 39.15%
McD 38.46% 38.40% 29.89% 38.91% 24.66% 26.96% 30.89%
devyani 30.68% 35.54% 41.26% 40.76% 43.53% 48.19% 48.44%
profit after tax jublient ₹ 516 ₹ 753 ₹ 928 ₹ 979 ₹ 632 ₹ 1,078 ₹ 1,197
McD ₹ 279 ₹ 354 ₹ 308 ₹ 384 ₹ 48 ₹ 206 ₹ 421
devyani ₹ 94 ₹ 307 ₹ 200 ₹ 232 ₹ 114 ₹ 686 ₹ 1,045
profit after tax % jublient 19.97% 24.95% 26.03% 24.94% 19.07% 24.53% 23.20%
McD 29.96% 31.15% 21.95% 24.84% 4.90% 13.10% 18.47%
devyani 9.02% 27.63% 15.23% 15.29% 10.08% 32.93% 34.85%
Roe jublient 64.07% 77.82% 73.63% 87.29% 44.27% 55.45% 58.72%
McD 52.87% 65.19% 52.72% 66.63% 10.04% 44.68% 74.37%
devyani -206.37% 22.37% - - -55.37% 22.60% 27.05%
Roce jublient 67.85% 88.86% 87.26% 39.52% 23.21% 30.21% 29.02%
McD 38.85% 48.71% 39.33% 24.83% 1.31% 13.59% 25.93%
devyani -19.68% 14.15% 9.51% 10.71% 9.71% 14.89% 17.48%
yearly store addition jublient - 17 93 108 25 207 249
McD - 22 19 23 -14 21 31
devyani - 0 0 0 264 100 879

Source: Company report

Asia Pacific Region - Oct 27, 2023

Westlife Foodworld Ltd.

Concall Analysis :
❑ financials
• In, Q3 FY23, the company gave a Record-breaking performance, revenue of INR 6.1 billion, a 28% YoY increase and the
average revenue per store was 6.2 Crores. and 30%-35% break-fast menu contributed to the per-store revenue.
Breakfast is a big opportunity for the company, especially on highways and in key cities like Mumbai and Bangalore.
• The same-store sales increased by 20% YoY, mainly driven by dine-in and EOTF (experience of the future). The
management has mentioned that the sustainable same-store sales growth is always between 6%-9%.
• The EBITDA margin reached an all-time high, representing 18% of INR 1.1 billion.
• The gross margin reaching 66.9%, increased YoY by 52 basis points and sequentially by 141 basis points.
• The restaurant operating margin (ROM) increased by a healthy 35% YoY to INR 1.45 billion, implying a margin of 23.8%
compared to 22.6% last year.
• The cash profit after tax stood at a record INR 753 million, implying a margin of 12.3%, which is a significant achievement.
• The company has generated free cash flow and has a net cash debt position.

❑ Expansion and Growth:

• In Q3, the company added 6 new restaurants and plans to add 15-20 stores in Q4. The management believes that there
are enough open markets where the expansion will not impact same-store sales. The total number of restaurants
currently stands at 341. vision to open 580-630 more restaurants by 2027
• Non-metro town demand has grown consistently and the company sees growth potential in both metro and non-metro
cities 1.5x on a pre-covid basis
• Non-metro town demand has grown consistently and the company sees growth potential in both metro and non-metro
cities 1.5x on a pre-covid basis, The target is to have 100% EOTF stores within the next 12-24 months
• Capex is between INR 150 crores to INR 225 crores, with 60% to 80% going towards building new restaurants.

❑ New Products:
• New product launches strategic imperatives to grow market share in meals The introduction of the Chicken Big Mac and
McCafe beverages has been successful in capturing consumer preferences and driving sales.
• The company has launched the McSaver Value platform, offering meals at INR179, to accelerate consumer frequency and
footfalls. McSpicy Fried Chicken Wings are available in Hyderabad and a few other places and Chicken Big Mac was
launched across all restaurants.
• Also the company has strengthened its chicken brand equity with the launch of the Piri Piri McSpicy range and a Jain-
friendly menu.

❑ Competition and Strategy:

• The company's long-term strategies have connected well with consumers and they are confident in navigating any
challenging environment
• The company's strategy is generating growth and strengthening its brand.
• Focus on menu, meals, and branding has resulted in increased sales and improved margins.
• The bricks and clicks Omni channel strategy has been successful in providing consumers with more options and occasions
to experience the brand.
• The management team is confident in the company's competitive strengths and future growth trajectory.
• The company is closely monitoring industry trends and opportunities, including the evolving food delivery space and the
potential of ONDC (One Nation, One Digital Platform).
• The price increase is normally only to manage inflation, but the company pushes harder to grow sales through guest
counts
• The company's current focus is on burgers, chicken, and coffee
• The company does not disclose the contribution of each department to revenue per store or restaurant operating
margins.

❑ Vision:
• WESTLIFE remains committed to its Vision 2027, which includes doubling sales, the number of restaurants, and
improving profitability. Westlife Food World Ltd. Opened 22 restaurants in the last 6 months. Aim to open 580 to 630
additional restaurants by 2027. and 40 to 45 new restaurants are planned to be opened in FY24. WESTLIFE is focused on
operational excellence, digital advantages, and creative menu offerings. The delivery business has seen strong growth,
and the company is committed to growing its own delivery platform while maintaining collaborative relationships
Asia Pacific Region - Oct 27, 2023

Westlife Foodworld Ltd.

Board Members
s.no Name designation Qualification Experience Negative Political
news Connection
1 Mr. B.L MD B.com and L.L.B form Mr.B.L. Jatia has 50 years of experience in NO NO
Jatia university of Mumbai paper, textiles, chemicals, food processing,
mining, hospitality, healthcare, investments
finance and retail sectors
2 Mr. Amit Director & CEO Bachelor of science - Chairman McDonald's India 1996 - May NO NO
jatia USE marshal school 2020 ·
of
business Angeles
3 Mr. CFO Chartered Mr Bhudolia has 15 years, he has also NO NO
Saurabh Accountants worked with organizations such as Tata
Bhudolia Steel, Mondelez International, and Sula
Vineyards. His areas of expertise include
accounting, budgeting & and costing,
treasury, taxation, project finance, financial
reporting, business partnering, M&A,
investor relations, funding, and auditing.
4 Ms Smita voice B.Com, Mumbai She holds the position of Voice Chairperson NO NO
Jatia Chairperson University, in Westlife Foodworld Ltd. Additionally, she
Management is also a part of the Marketing and
Development Restaurant Leadership Program offered by
Program offered by b Hamburger University.
Harvard University,
Boston, USA
5 Mr. P.R. Independent Chartered Mr. Barpande has 30 years in the areas of NO NO
Barpande Director Accountants accounts and audit. He had a wide
experience of serving domestic and
international clients as an audit partner. He
was actively involved in reformatting
accounts to US GAAP / IFRS for major
domestic and multinational companies and
some Indian banks.
6 Mr. Tarun Independent MBA(Finance) from 2010 and 2013, Mr. Kataria was the Chief NO NO
Kataria Non-Executive The Wharton School, Executive Officer, India of Reigate Capital
Director University of Markets Ltd. Prior to joining Reigate Capital
Pennsylvania. Or CA. Markets.
7 Mr. Manish Independent Chartered 2006 to 2011, he was CEO of Enam NO NO
Chokhani Director Accountant and MBA Securities, India’s leading investment bank.
from the London Mr.Manish is one of India’s most respected
Business School. financial experts and investors.
8 Mrs. Independent The University of Business leader with 20+ years of NO NO
Amisha Director Texas at Arlington experience, Coo in Arvind Digital from 2015
Jain Master’s Degree, to 2018, CEO in Zivame from 2018 to 2022,
Electrical Engineering and currently Miss Amisha Jain is an
independent director in Westlife and MD in
Levi's
9 Mr. Akshay Executive B.Sc degree with joining McDonald’s in 2015, he has worked NO NO
Jatia Director majors in Finance across various functions such as strategy,
and International operations, marketing and IT.
Business from
Leonard N. Stern
School of Business,
New York University
Source: Annual report, LinkedIn,
Asia Pacific Region - Oct 27, 2023

Westlife Foodworld Ltd.

Comments :

Based on our screening of publicly available data, we have found that the company has a strong management team with
vast experience and technical expertise. Additionally, the independent directors come from a diverse range of industries,
including distinguished professions such as chartered accountancy. We have not found any prominent political
connections between the leadership and independent directors with national and regional political parties, and we have
not identified any conflicts of interest between the independent directors and the company as reported.

The current executive director of the company is Mr. Akshay Jatia, who is the son of the company CEO, Mr. Amit Jatia.
Mrs. Smita Jatia holds the position of vice chairperson. Based on this information, it may appear that the company is run
as a family business. Additionally, in 2022, Mr. Anchal Jatia was an ex-independent director in the company, which further
supports this notion. Members of the management team are hired or promoted based on their competency and expertise

Exhibit: 3 Skills & Expertise in the particular industry

s.no. Skills/competence Mr. Amit MS. Smita Mr. Akshay Mr.P.R Mr. Manish Mr. Tarun Ms. Amisha Jain
/Expertise Jatia Jatia Jatia Barpande Chokhani Kataria

Source: Annual Report

Shareholding Pattern :

Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Sep-23

Promoters 62.2% 62.2% 62.2% 59.1% 58.0% 57.0% 56.2% 56.2%
FIIs 5.4% 13.2% 15.1% 12.7% 10.8% 9.9% 9.6% 10.4%
DIIs 16.7% 8.7% 7.5% 16.1% 20.8% 22.8% 24.2% 23.7%
Public 15.7% 16.0% 15.3% 12.2% 10.4% 10.0% 9.7% 9.4%
Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.2% 0.3% 0.3%
Source: Screener

As of September 30, 2023, the company has a majority shareholding with promoters and institutions holding 56.2% and
34.1% respectively. The remaining shares are held by FIIs at 10.4%, DIIs at 23.7%, public holding at 9.4%, and others at
0.31%. In the December 2020 quarter, promoter shareholding decreased from 59.1% to 56.2% in the September 2023
quarter. FIIs and DIIs holding increased from 9.6% to 10.4% and 20.4% to 23.75% respectively while public holding
decreased from 10.9% to 9.4% as of September 2023. Overall, it looks like most of the shares are held by big investors
which is a good sign.
Asia Pacific Region - Oct 27, 2023

Westlife Foodworld Ltd.

Exhibit: 4 Promoter & promoter group Holdings

Source: Annual Report, trendlyne, BSE Source: Annual Report, trendlyne, BSE

DII Holding QoQ % Total Shareholding %

9.4% 0.3%
24.2%
24.1%

24.1%
23.7%

23.7%
23.3%

Promoters 10.4%
22.8%
22.7%
22.0%

DIIs
20.9%
20.8%
20.4%

FIIs
Public 56.2%

Others 23.7%
Dec-20

Mar-21

Jun-21

Sep-21

Dec-21

Mar-22

Jun-22

Sep-22

Dec-22

Mar-23

Jun-23

Sep-23

Source: Annual Report, trendlyne, BSE Source: Annual Report, trendlyne, BSE

Exhibit: 5 Management Remuneration

Based on our research, we found that the company has a remuneration policy for its executive and non-executive directors.
During FY22, the company incurred executive remuneration of 12,75,000 as compared to 14,50,000 in FY21.

(All figures in lakhs.) Remuneration

Name designation FY21 FY22 growth in remuneration
Mr. B.L Jatia Managing Director 2,25,000 1,50,000 -33%
Mr. Amit Jatia Chief executive office 5,50,000 7,25,000 32%
Ms. Smita Jatia Voice chairperson 5,00,000 5,75,000 15%
total 12,75,000 14,50,000

We have noticed differences in the growth of revenue and key management personnel (KMP) remuneration. The revenue saw a
compound annual growth rate (CAGR) of 10.20% over the last 5 years and 13.75% CAGR over the last 3 years. Meanwhile, the
remuneration of the management increased by 23.2% CAGR over the last 5 years and 31.3% CAGR over the last 3 years.

Source: Annual report, LinkedIn,

Asia Pacific Region - Oct 27, 2023

Westlife Foodworld Ltd.

(all figures in cr.) Trend

years Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 5 years 3years
Sales ₹ 1,402.04 ₹ 1,547.79 ₹ 986.03 ₹ 1,576.49 ₹ 2,278.18 10.20% 13.75%
Sales growth % 10.40% -36.29% 59.88% 44.51%
PBT ₹ 321.57 ₹ 383.05 ₹ 19.00 ₹ 206.05 ₹ 458.74 7.36% 6.19%
PBT growth % 19.12% -95.04% 984.47% 122.64%
Net profit ₹ 307.69 ₹ 384.48 ₹ 48.31 ₹ 206.45 ₹ 420.87 6.47% 3.06%
Net profit growth % 24.96% -87.43% 327.34% 103.86%

Median Remuneration 835 1025 1450 2050 2353 23.02% 31.92%

22.75% 41.46% 41.38% 14.78%

MR%PBT 2.60% 2.68% 76.32% 9.95% 5.13% 14.59% 24.22%

Source: Annual Report

ratio of remuneration to median employe remuneration

Westlife Food 237.0x
Jubilant Food. 22.0x
Devyani Intl. 257.9x
Source: Annual Report

Compared to its peers, the company's remuneration growth and revenue growth :
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 5 YEARS 3 YEARS
revenue growth
Jubilant Food. 18.0% 10.2% -15.7% 32.7% 17.3% 11.3% 9.5%
Devyani Intl. 18.0% 15.7% -25.2% 83.6% 43.8% 22.0% 25.5%
Westlife Food 23.5% 10.4% -36.3% 59.9% 44.5% 15.0% 13.8%
Sapphire Foods 24.7% 12.3% -23.9% 68.8% 31.6% 18.8% 19.1%
Growth in KMP remuneration
Jubilant Food. - 3% 131% 30% 73% 86.2% 181.8%
Devyani Intl. - - - 5% 67% - 265.1%
Westlife Food - 13.0% 36.2% -7.8% 13.6% 0.9% 1.5%
Sapphire Foods - - - - 16.6% - -
Source: peers Comps Annual Report

We have observed a variation in revenue growth and KMP remuneration growth.

• Jubilant Food - Revenue growth decreased from 32.7% in FY22 to 17.3% in FY23. but KMP remuneration growth
increased by 30% in FY22 to 73% in FY23.

• Westlife foodworld - Revenue growth decreased from 68% in FY22 to 31% in FY23. also, KMP remuneration growth
decreased by -7.8% in FY22 to 13.6% in FY23.

• Devyani - Revenue growth decreased from 83% in FY22 to 44% in FY23. but KMP remuneration growth increased by
18% in FY22 to 19% in FY23.

• Sapphire - Revenue growth decreased from 68% in FY22 to 31% in FY23. KMP remuneration growth in FY23 increased by
16%.
Source: peers Comps Annual Report
Asia Pacific Region - Oct 27, 2023

Westlife Foodworld Ltd.

Exhibit: 6 Board Meeting Attendance

Name of the director Designation Relationship between the No. of board meeting Present in last AGM
th
directors attendance in 2023 (i.e 15 sep 2021)
Mr. B.L Jatia promoter non- Related to Mr.Amit jatia &mrs. 2 Yes
executive smita jatia & akshay jatia
Mr. Amit Jatia promote executive Related to Mr.B.L jatia &mrs. 4 Yes
smita jatia & akshay jatia
Ms.Smita Jatia promoter non- Related to Mr. B.L jatia, Mr. 4 Yes
executive Amit jatia & Akshay jatia
Mr. Akshay Jatia Whole time Related to Mr. B.L ajtia , 3 Yes
director(Executive & Mr.Amit jatia &mrs. smita jatia
pronmoter)
Mr. P.R Barpande Independent (non Not related to any director 4 Yes
executive)
Mr. Manish Chokhani Independent (non Not related to any director 4 Yes
executive)
Mr. Tarun Kataria Independent (non Not related to any director 4 Yes
executive)
Mr. Amisha Jain Independent (non Not related to any director 3 No
executive)

Source: Annual Report

During FY 23 the company has been supervised Bod efficiently as the majority of the members of the board have attended all
the meetings showing good participation by the board. In key matters discussed during the year and held by the company
taking effective designs.

Exhibit: 7 Quarterly Snapshots

Sep-22A Dec-22A Mar-23A Jun-23A Sep-23A Dec-24E Mar-24E
Sales 572 611 556 615 615 620.8 627.14
YOY Sales Growth % 6.8% -9.0% 10.6% 0.0% 0.9% 1.0%
Expenses - 476 509 468 510 517 520.9 526.82
Material Cost 176 202 156 181 184 178 174
Employee Cost 74 84 93 80 83 87 84
Gross Profit 396 409 400 434 431 443 463
Gross Margin % 69.2% 66.9% 71.9% 70.6% 70.1% 71.3% 73.8%
EBITDA 96 102 89 104 98 100 100
EBITDA margin % 17.0% 17.0% 16.0% 17.0% 16.0% 16.3% 15.9%
EBIT 64 71 54 66 57 57 51
Interest 23 23 25 26 27 28 31
Depreciation 37 39 41 43 44 46 50
Profit before tax 42 48 28 41 30 29 20
Tax % 25% 24% 28% 29% 26% 29% 30%
Net Profit 32 36 20 29 22 20 13
Net Margin % 5.6% 5.9% 3.6% 4.7% 3.6% 3.1% 2.0%
EPS in Rs 2.02 2.33 1.29 1.85 1.43 1.29 0.86
Source: Annual Report
Asia Pacific Region - Oct 27, 2023

Westlife Foodworld Ltd.

Exhibit: 8 Annual Snapshots

Mar-19A Mar-20A Mar-21A Mar-22A Mar-23A Mar-24E Mar-25E 5 YEARS 3 YEARS
Sales 1,402 1,548 986 1,576 2,278 2,092 2,648 10.2% 13.7%
Sales Growth % - 10.41% -36.30% 59.84% 44.54% -8.17% 26.58%
Expenses 1,277 1,329 925 1,379 1,896 1,748 2,179 8.2% 12.6%
Material Cost 512 538 348 513 686 616 738
Manufacturing Cost 322 270 240 384 500 484 651
Employee Cost 197 220 179 210 311 289 350
Other Cost 224 259 148 238 332 299 360
Gross Profit 890 1010 638 1063 1592 1,476 1,910 12.3% 16.4%
Gross Margin % 63.51% 65.23% 64.68% 67.46% 69.89% 70.65% 74.00%
EBITDA 125 219 61 197 382 344 469 25.0% 20.4%
EBITDA margin % 9% 14% 6% 13% 17% 16% 20%
EBIT 53 73 -45 81 242 197 323 35.5% 49.1%
Other Income 8 -8 34 20 12 24 33 0.08 -2.14
Exceptional items 6 -21 -10 9 0 2 18 -1.51 -0.79

Other income normal 2.05 13 44.12 10.64 12.48 22 15 0.44 -0.01

Interest 18 81 85 83 93 118 124 0.39 0.05
Depreciation 80 138 140 136 152 172 179 0.14 0.03
Profit before tax 35 -9 -129 -2 149 79 200 0.34 -3.55
Tax % 39% 16% 23% 19% 25% 17% 22% -8.5% 16.0%
Net Profit 21 -7 -99 -2 112 61 152 0.40 -3.52
Net Margin % 1.50% -0.45% -10.04% -0.13% 4.92% 1.31% 6.51% 26.8% -321.9%
Source: Annual Report, Screener

Exhibit: 9 Key Ratios

perticular FY21A FY22A FY23A FY24E FY25E
Per share (rs)
Earning per share -0.11 7.16 6.89 6.70 8.70
Cash earning per share 12.2 15.8 16.9 18.7 23
Book Value per share 11.10 18.20 18.20 18.20 20.70
Free Cash Flow 11.20 16.50 18.10 20.7 27.3
Dividend per share - - - 3.00 4.40
Return Ratio (%)
Return on capital employed -3.1% 5.3% 13.7% 18.70% 21.60%
Return on invested capital 5.20% 11.40% 10.50% 11.60% 13.70%
Return on Equity -20.7% -0.4% 19.7% 17.70% 20.40%
Valuation
P/E 7.26x 4.74x 4.68x 5.80x 6.20x
P/B 14.88x 16.17x 18.82x 19.00x 19.52x
Ev/EBITDA 133.12x 43.07x 30.95x 25.20x 27.80x
price/sales 7.26x 4.74x 4.68x 5.20x 5.80x
price/CFO 55.42x 43.81x 30.57x 29.50x 27.50x
Debt/Equity 2.01x 2.28x 2.13x 2.19x 3.10x

Source: Annual Report, Screener

Asia Pacific Region - Oct 27, 2023

Westlife Foodworld Ltd.

Exhibit: 10 Ratios
Ratios Analysis: (1/4)
Profitability Ratios
Revenue growth
Peers Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 5Y 3Y
Jubilant Food. 18.0% 10.2% -15.7% 32.7% 17.3% -0.8% 19.3%
Devyani Intl. 18.0% 15.7% -25.2% 83.6% 43.8% 19.5% 40.8%
Westlife Food 23.5% 10.4% -36.3% 59.9% 44.5% 13.6% 62.4%
Sapphire Foods 24.7% 12.3% -23.9% 68.8% 31.6% 5.0% 37.0%

Mean 21.1% 12.1% -25.3% 61.3% 34.3% 9.3% 39.9%

Median 20.8% 11.3% -24.5% 64.4% 37.7% 9.3% 38.9%
Source: company analysis

revenue growth is highest compared to its peers in our company in Fy23 company gave a 44.5% sales growth. The average is 34.3% in
FY223 and the average 5Y and 3Y growth is 9.3% and 39.9%.

EBITDA growth
Peers Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 5Y 3Y
Jubilant Food. 36.3% 46.5% -11.6% 41.8% 2.7% -40.7% -61.4%
Devyani Intl. 113.8% 7.4% -10.3% 141.5% 38.2% -19.6% 72.7%
Westlife Food 47.4% 75.6% -72.1% 223.8% 93.5% 14.5% 7.4%
Sapphire Foods 154.7% 377.6% -32.5% 143.4% 40.9% -23.3% -52.3%

Mean 88.0% 126.8% -31.6% 137.6% 43.8% -17.3% -8.4%

Median 80.6% 61.0% -22.1% 142.4% 39.6% -21.5% -22.5%
Source: company analysis

EBITDA growth is highest compared to its peers in our company in the company gave a 93.5% which is lesser than FY22, in
FY22 Company Gave 223.8% EBITDA growth. The average is 34.3% In FY23 and the average 5Y and 3Y growth is -17.3% and -
8.4%.
Net margin
Peers Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 5Y 3Y
Jubilant Food. 8.9% 7.1% 7.0% 9.5% 6.8% -5.2% -1.2%
Devyani Intl. -7.2% -8.0% -5.6% 7.4% 8.8% -204.0% -203.0%
Westlife Food 1.5% -0.5% -10.1% -0.1% 4.9% 26.4% -317.8%
Sapphire Foods -3.7% -11.9% -9.8% 2.7% 10.3% -222.4% -195.3%

Mean -0.1% -3.3% -4.6% 4.9% 7.7% -101.3% -179.3%

Median -1.1% -4.2% -7.7% 5.1% 7.8% -104.6% -199.2%
Source: company analysis

Net margin growth was 4.9% in FY23 which is the lowest compared to its peers the company suffered to maintain the net
margin from FY20 -0.5% to FY22 -0.1% where whereas other peers gave a good and consistent net margin.
Asia Pacific Region - Oct 27, 2023

Westlife Foodworld Ltd.

Ratios Analysis : (2/4)

Efficiency Ratios
Detor Days
Peers Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Average 5Y Average 3Y
Jubilant Food. 2.8 1.5 1.9 1.8 2.0 2.0 1.9
Devyani Intl. 6.4 4.2 5.4 3.7 3.5 4.6 4.2
Westlife Food 2.5 1.1 3.3 3.1 1.7 2.3 2.7
Sapphire Foods 6.9 1.3 2.8 3.0 2.9 3.4 2.9

Mean 4.7 2.0 3.3 2.9 2.5 3.1 2.9

Median 5.3 2.2 3.8 3.3 2.7 3.4 3.3
Source: company analysis

It's great to see that the debtor days have reduced over the years, which is definitely a good sign. In FY19, the debtor days
were at 2.5 compared to the company's peers. However, in FY23, the company managed to reduce it to 1.7, which is
around 2 days. The 5-year and 3-year averages for debtor days are at 2.3 days and 2.7 days respectively

Inventory days
Peers Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Average 5Y Average 3Y
Jubilant Food. 7.9 8.8 14.7 13.4 12.5 11.5 13.5
Devyani Intl. 15.3 17.4 20.0 15.0 15.7 16.7 16.9
Westlife Food 10.7 9.7 17.2 13.0 11.4 12.4 13.9
Sapphire Foods 11.7 12.9 17.1 14.0 16.0 14.3 15.7

Mean 11.4 12.2 17.3 13.8 13.9 13.7 15.0

Median 12.6 13.3 18.1 14.0 14.4 14.5 15.5
Source: company analysis

It appears that the inventory days have increased over the years, especially in FY21, where it was at 17.2 days, the highest in
the last 5 years due to the impact of COVID-19. However, the company has managed to reduce its inventory days in FY23 to
11.4, which is the lowest compared to its peers. The average inventory days for the company are at 13.9.

Total Asset turnover

Peers Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Average 5Y Average 3Y
Jubilant Food. 1.9 1.2 0.9 0.9 1.0 1.2 0.9
Devyani Intl. 0.7 0.8 0.7 0.9 1.0 0.8 0.9
Westlife Food 1.4 0.9 0.6 0.9 1.1 1.0 0.8
Sapphire Foods 0.7 0.8 0.7 0.9 1.0 0.8 0.9

Mean 1.2 0.9 0.7 0.9 1.0 0.9 0.9

Median 0.9 0.8 0.6 0.9 1.0 0.9 0.9
Source: company analysis

In FY23, the total asset turnover ratio of the company is 1.1x, which is the highest compared to its peers. However, the
average for the past 5 years and 3 years is 0.9x. the ratio of 1.1x is lower than FY19, which had the highest 1.4x in the 5-year
period from FY19 to FY23.
Asia Pacific Region - Oct 27, 2023

Westlife Foodworld Ltd.

Sales/capital employed
Peers Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Average 5Y Average 3Y
Jubilant Food. 2.8 1.4 1.1 1.1 1.1 1.5 1.1
Devyani Intl. 3.1 4.3 0.8 1.1 1.2 2.1 1.0
Westlife Food 1.7 1.0 0.7 1.0 1.3 1.1 1.0
Sapphire Foods 2.1 1.1 0.9 1.0 1.0 1.2 1.0

Mean 2.4 2.0 0.9 1.0 1.2 1.5 1.0

Median 2.3 2.1 0.8 1.0 1.2 1.5 1.0
Source: company analysis

Additionally, the sales/capital employed ratio of the company is also showing an upward trend, as it increased to 1.3x in FY23
compared to its peers. The average for the past 5 years and 3 years is around 1.1x. This indicates that the company is
efficiently utilizing its capital to generate sales

Ratios Analysis : (3/4)

Leverage Ratio

Debt/Equity
Peers Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Average 5Y Average 3Y
Jubilant Food. 0.0x 1.5x 1.1x 1.1x 1.3x 1.0x 1.2x
Devyani Intl. -7.0x -2.9x 11.7x 1.8x 1.6x 1.1x 5.0x
Westlife Food 0.4x 1.7x 2.0x 2.3x 2.1x 1.7x 2.1x
Sapphire Foods 0.2x 1.2x 1.3x 0.8x 0.8x 0.9x 1.0x

Mean -1.6x 0.4x 4.0x 1.5x 1.4x 1.2x 2.3x

Median -2.1x 0.0x 5.0x 1.6x 1.5x 1.2x 2.7x
Source: company analysis

The current D/E ratio of our company stands at 2.1x and has remained constant for the past 3 years. This is higher than the
average and median D/E ratios of 1.2x. Although the current ratio is within a comfortable range, any further increase in the
D/E ratio would be a cause for concern.

Debt/EBITDA
Peers Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Average 5Y Average 3Y
Jubilant Food. 0.0x 1.9x 2.1x 1.9x 2.2x 1.6x 2.1x
Devyani Intl. 2.4x 2.5x 6.7x 2.6x 2.4x 3.3x 3.9x
Westlife Food 1.9x 4.4x 15.9x 5.3x 3.1x 6.1x 8.1x
Sapphire Foods 2.5x 3.5x 5.1x 2.6x 2.2x 3.2x 3.3x

Mean 1.7x 3.1x 7.5x 3.1x 2.5x 3.6x 4.4x

Median 2.2x 3.5x 9.3x 3.5x 2.6x 4.2x 5.1x
Source: company analysis

The current Debt/EBITDA ratio for our company is 3.1x, which is the highest among our peers. However, we have seen an
upward trend in this ratio. It is important to note that we were able to reduce our Debt/EBITDA ratio from 5.3x in FY22 to
3.1x in FY23. While our current Debt/EBITDA ratio is in a comfortable range, any further increase in this ratio would be a
cause for concern. Other companies in our industry are maintaining a Debt/EBITDA ratio of around 2x.
Asia Pacific Region - Oct 27, 2023

Westlife Foodworld Ltd.

Interest Coverage (Times)

Peers Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Average 5Y Average 3Y
Jubilant Food. - 3.4x 2.9x 4.2x 3.4x 3.5x 3.5x
Devyani Intl. 0.3x 0.3x 0.6x 2.0x 2.6x 1.1x 1.7x
Westlife Food 3.0x 0.9x -0.5x 1.0x 2.6x 1.4x 1.0x
Sapphire Foods -1.5x -1.2x -0.3x 1.7x 2.2x 0.2x 1.2x

Mean 0.6x 0.8x 0.7x 2.2x 2.7x 1.5x 1.9x

Median 0.6x 0.0x -0.1x 1.5x 2.5x 0.9x 1.3x
Source: company analysis

The interest coverage ratio is similar to that of its peers and falls within a comfortable range. In FY23, the ratio is expected to
be 2.6x, which is a reduction compared to FY19's ratio of 3.1x. The ratio was at its lowest in FY20 at 0.9x, but it has significantly
increased YoY.
Financial Leverage
Peers Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Average 5Y Average 3Y
Jubilant Food. 1.5x 3.0x 2.6x 2.5x 2.6x 2.4x 2.6x
Devyani Intl. -25.7x -10.0x 14.7x 3.3x 3.1x -2.9x 7.0x
Westlife Food 1.8x 3.1x 3.6x 3.9x 3.7x 3.2x 3.7x
Sapphire Foods 2.3x 2.6x 2.8x 2.1x 2.1x 2.4x 2.3x

Mean -5.0x -0.3x 5.9x 2.9x 2.9x 1.3x 3.9x

Median -7.2x -1.4x 7.0x 3.1x 3.0x 0.9x 4.4x
Source: company analysis

The financial leverage of the company has been continuously increasing and is currently higher than its peers due to the
burden of debt, with a ratio of 3.7x. This is in contrast to the average 5-year and 3-year ratios of 1.3x and 3.9x respectively,
which can be attributed to the impact of COVID. Despite this, the company plans to increase its number of stores and aims
to add 10 to 20 new stores by the end of the year.

Ratios Analysis : (4/4)

Valuation Ratios

Enterprise Value (EV)

Peers Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Average 5Y Average 3Y
Jubilant Food. 18,561 20,431 39,494 36,334 31,335 29,231 35,721
Devyani Intl. - - - 22,301 18,910 20,605 20,605
Westlife Food 6,895 5,992 8,119 8,504 11,828 8,268 9,484
Sapphire Foods - - - 9,947 8,477 9,212 9,212

Mean 12,728 13,212 23,806 19,271 17,637 16,829 18,755

Median 6,895 5,992 8,119 13,584 13,072 12,695 13,100

Source: company analysis

Asia Pacific Region - Oct 27, 2023

Westlife Foodworld Ltd.

Perice/Earning
Peers Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Average 5Y Average 3Y
Jubilant Food. 59.9x 69.6x 166.6x 83.2x 82.3x 92.3x 110.7x
Devyani Intl. - - - 136.1x 66.4x 101.3x 101.3x
Westlife Food 313.3x -685.2x -72.0x -4474.9x 95.5x -964.7x -1483.8x
Sapphire Foods - - - 204.7x 33.2x 118.9x 118.9x

Mean 186.6x -307.8x 47.3x -1012.7x 69.3x -163.0x -288.2x

Median 313.3x -685.2x -72.0x -1378.0x 65.0x -248.2x -421.2x
Source: company analysis

EV/EBITDA
Peers Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Average 5Y Average 3Y
Jubilant Food. 30.8 23.1 50.6 32.8 27.6 33.0 37.0
Devyani Intl. 0.0 0.0 0.0 46.8 28.8 15.1 25.2
Westlife Food 55.3 27.4 133.1 43.1 31.0 58.0 69.0
Sapphire Foods 0.0 0.0 0.0 32.6 19.7 10.5 17.4

Mean 21.5 12.6 45.9 38.8 26.8 29.1 37.2

Median 18.4 9.1 44.4 40.8 26.5 27.9 37.2
Source: company analysis

Price/Book value
Peers Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Average 5Y Average 3Y
Jubilant Food. 15.1 17.3 26.9 17.9 14.2 18.3 19.7
Devyani Intl. 0.0 0.0 0.0 30.8 18.0 9.7 16.2
Westlife Food 11.4 8.7 14.9 16.2 18.8 14.0 16.6
Sapphire Foods 0.0 0.0 0.0 9.3 6.2 3.1 5.2

Mean 6.6 6.5 10.5 18.5 14.3 11.3 14.4

Median 3.8 2.9 5.0 18.8 14.3 9.0 12.7
Source: company analysis

Price/Sales
Peers Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Average 5Y Average 3Y
Jubilant Food. 5.3 4.9 11.6 7.9 5.6 7.1 8.4
Devyani Intl. - - - 10.1 5.8 8.0 8.0
Westlife Food 4.8 3.2 7.3 4.7 4.7 4.9 5.6
Sapphire Foods - - - 5.5 3.4 4.4 4.4

Mean 5.1 4.1 9.4 7.1 4.9 6.1 6.6

Median 4.8 3.2 7.3 6.8 4.6 5.8 6.0
Source: company analysis
Asia Pacific Region - Oct 27, 2023

Westlife Foodworld Ltd.

Perice/Earning
Peers Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Average 5Y Average 3Y
Jubilant Food. 59.9x 69.6x 166.6x 83.2x 82.3x 92.3x 110.7x
Devyani Intl. - - - 136.1x 66.4x 101.3x 101.3x
Westlife Food 313.3x -685.2x -72.0x -4474.9x 95.5x -964.7x -1483.8x
Sapphire Foods - - - 204.7x 33.2x 118.9x 118.9x

Mean 186.6x -307.8x 47.3x -1012.7x 69.3x -163.0x -288.2x

Median 313.3x -685.2x -72.0x -1378.0x 65.0x -248.2x -421.2x
Source: company analysis

EV/EBITDA
Peers Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Average 5Y Average 3Y
Jubilant Food. 30.8 23.1 50.6 32.8 27.6 33.0 37.0
Devyani Intl. 0.0 0.0 0.0 46.8 28.8 15.1 25.2
Westlife Food 55.3 27.4 133.1 43.1 31.0 58.0 69.0
Sapphire Foods 0.0 0.0 0.0 32.6 19.7 10.5 17.4

Mean 21.5 12.6 45.9 38.8 26.8 29.1 37.2

Median 18.4 9.1 44.4 40.8 26.5 27.9 37.2
Source: company analysis

Price/Book value
Peers Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Average 5Y Average 3Y
Jubilant Food. 15.1 17.3 26.9 17.9 14.2 18.3 19.7
Devyani Intl. 0.0 0.0 0.0 30.8 18.0 9.7 16.2
Westlife Food 11.4 8.7 14.9 16.2 18.8 14.0 16.6
Sapphire Foods 0.0 0.0 0.0 9.3 6.2 3.1 5.2

Mean 6.6 6.5 10.5 18.5 14.3 11.3 14.4

Median 3.8 2.9 5.0 18.8 14.3 9.0 12.7
Source: company analysis

Price/Sales
Peers Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Average 5Y Average 3Y
Jubilant Food. 5.3 4.9 11.6 7.9 5.6 7.1 8.4
Devyani Intl. - - - 10.1 5.8 8.0 8.0
Westlife Food 4.8 3.2 7.3 4.7 4.7 4.9 5.6
Sapphire Foods - - - 5.5 3.4 4.4 4.4

Mean 5.1 4.1 9.4 7.1 4.9 6.1 6.6

Median 4.8 3.2 7.3 6.8 4.6 5.8 6.0
Source: company analysis
Asia Pacific Region - Oct 27, 2023

Westlife Foodworld Ltd.

Exhibit: 11 Moat Assessment

Moat Assessment and comparison with Industry peers

MOAT ASSESSMENT - Westlife

Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Gross Profit Margin 63.51% 65.23% 64.68% 67.46% 69.89%
EBITDA Margin 14.13% 6.19% 12.53% 16.77% 16.40%
Net Profit Margin -0.47% -10.08% -0.11% 4.90% 4.49%
ROIC 2.63% -0.48% -6.91% -0.11% 6.41%
ROCE 4.08% 6.12% -4.37% 3.53% 10.98%
ROE 3.78% -1.26% -18.79% -0.35% 21.71%
EPS -₹ 0.5 -₹ 6.4 -₹ 0.1 ₹ 7.2 ₹ 6.9
ROA 2.18% -0.53% -5.70% -0.09% 5.73%
Source: company analysis

MOAT ASSESSMENT - Jubilant Food

Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Gross Profit Margin 75.15% 74.93% 78.03% 77.40% 75.70%
EBITDA Margin 22.48% 23.55% 25.17% 22.02% 19.16%
Net Profit Margin 7.10% 6.96% 9.51% 6.84% 4.43%
ROIC 41.54% 13.05% 9.19% 11.99% 8.14%
ROCE 37.24% 21.95% 12.74% 18.88% 12.42%
ROE 28.55% 23.41% 18.09% 24.80% 17.73%
EPS ₹ 4.2 ₹ 3.5 ₹ 6.3 ₹ 5.4 ₹ 3.6
ROA 18.97% 10.67% 6.46% 9.78% 6.95%
Source: company analysis

MOAT ASSESSMENT - Devyani Int.

Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Gross Profit Margin 70.33% 69.64% 69.63% 71.22% 70.02%
EBITDA Margin 14.49% 17.37% 22.84% 21.94% 21.16%
Net Profit Margin -8.01% -5.55% 7.44% 8.76% 5.93%
ROIC -24.09% -35.82% -4.50% 8.27% 10.71%
ROCE 0.38% -0.98% -3.62% 19.35% 18.73%
ROE -273.29% 93.63% 167.24% 38.77% 31.69%
EPS -₹ 11.4 -₹ 0.5 ₹ 1.3 ₹ 2.2 ₹ 1.5
ROA -7.43% -6.58% -3.55% 7.89% 10.00%
Source: company analysis

MOAT ASSESSMENT - Sapphire

Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Gross Profit Margin 66.94% 67.80% 69.60% 69.34% 67.31%
EBITDA Margin 13.85% 12.29% 17.72% 18.98% 18.51%
Net Profit Margin -11.88% -9.80% 2.67% 10.29% 9.27%
ROIC -11.70% -14.08% -9.30% 2.98% 11.67%
ROCE -8.18% -0.67% -7.65% 6.51% 19.12%
ROE -9.41% -31.96% -19.89% 6.19% 20.61%
EPS -₹ 31.7 -₹ 18.9 ₹ 7.2 ₹ 36.7 ₹ 34.6
ROA -4.63% -12.85% -7.31% 2.62% 9.81%
Source: company analysis
Asia Pacific Region - Oct 27, 2023

Westlife Foodworld Ltd.

Commentary :
The company's gross profit margin is lower than its peers, ranging from 63.5% to 69%. In contrast, Jubilant Food
consistently generates a gross profit margin with a GP% of 75.70%, which is the highest among its peers. The company's
EBITDA increased from 14.13% to 16.40% in FY23, but it is not consistent with Devyani International and Jubilant Food
World, which maintain it at 20.5% to 22%. The net profit margin suffered from FY19 to FY21, but in the last two years, it
has been relatively constant at 4.50%. Although the Return on Invested Capital (ROIC) significantly increased to 6.41%, it is
not impressive compared to other peers. Jubilant Food World has consistently maintained its ROIC on the safer side and
has never gone negative. The ROE and ROCE have been quite impairing for the last two years, but they are not consistent.
Additionally, EPS and ROA are also not consistent. Moreover, Jubilant Food World has consistently shown an upward
trajectory due to its well-efficient business and well-known branding moat, which sets it apart from its peers. In contrast,
Westlife | McDonald's has a brand moat, and SSSG (same-store sales growth)/per-store revenue is higher than any other
peers.
Exhibit: 12 Westlife vs ROCE % Exhibit: 13 Westlife vs peers EPS (in Rs.)
ROCE % EPS %
Westlife Jublient devyani sapphire Westlife Jublient devyani sapphire
₹ 60.0
37.2%

₹ 36.7

₹ 34.6
40.0% ₹ 40.0
22.0%

19.3%

19.1%
18.9%

18.7%

30.0%

₹ 7.2

₹ 7.2

₹ 6.9
₹ 6.3

₹ 5.4
₹ 4.2

₹ 3.6
₹ 3.5
₹ 20.0

₹ 2.2

₹ 1.5
₹ 1.3
12.7%

12.4%
11.0%

20.0%
6.5%
6.1%

₹ 0.0
4.1%

3.5%
0.4%

10.0%

-₹ 0.1
-₹ 0.5

-₹ 0.5
FY19 FY20 FY21 FY22 FY23

-₹ 6.4
-₹ 20.0
-₹ 11.4

0.0%

-₹ 18.9
FY19 FY20 FY21 FY22 FY23
-0.7%
-1.0%

-₹ 40.0
-₹ 31.7
-3.6%

-10.0%
-4.4%

-7.6%
-8.2%

-20.0%
Source: company peer analysis
Source: company peer analysis
Exhibit: 14 Westlife vs Peers profit margin % Exhibit: 15 Westlife vs peers EBITDA margin

Gross profit margin % EBITDA margin %

Westlife Jublient devyani sapphire Westlife Jublient devyani sapphire

78.0%

77.4%

25.2%
75.7%
75.2%

74.9%

90.0% 30.0%
22.8%
23.6%
71.2%
70.3%

70.0%
69.9%
69.6%
69.6%

69.6%

69.3%

21.9%
22.5%
67.8%

67.5%

67.3%
66.9%

22.0%

21.2%
65.2%

64.7%
63.5%

80.0%

19.2%
25.0%
19.0%

18.5%
17.4%

17.7%

70.0%
16.8%

16.4%
14.5%
14.1%

20.0%
13.8%

60.0%
12.5%
12.3%

50.0%
15.0%
40.0%
6.2%

30.0% 10.0%
20.0%
5.0%
10.0%
0.0% 0.0%
FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23
Source: company peer analysis Source: company peer analysis

Exhibit: 16 Westlife vs Peers net profit margin % Exhibit: 17 Westlife vs Peers ROE %
Net Profit margin% ROE %
Westlife Jublient devyani sapphire Westlife Jublient devyani sapphire
167.2%

15.0% 200.0%
93.6%

10.0% 10.3%
38.8%

31.7%

9.3%
28.6%

24.8%
23.4%

21.7%

8.8%
20.6%
18.1%

17.7%

7.4% 100.0%
6.2%
3.8%

9.5% 5.9%
5.0% 7.1% 4.9% 4.5%
7.0% 6.8%
2.7%
4.4% 0.0%
0.0% -0.5% -0.1%
FY19 FY20 FY21 FY22 FY23
-0.4%
-1.3%
-9.4%

-18.8%

-19.9%

FY19 FY20 FY21 FY22 FY23

-32.0%

-5.0% -5.6% -100.0%

-8.0%
-10.0% -9.8% -10.1%
-11.9% -200.0%
-273.3%

-15.0%
-300.0%
Source: company peer analysis
Source: company peer analysis
Asia Pacific Region - Oct 27, 2023

Westlife Foodworld Ltd.

Exhibit: 18 Dupont
Dupont Analysis

Revenue from Operations (in crores.) Net Profit (in Crores.) Earnings Per Share (in Rs.)
2,278 7.2
112

1,548 1,576 1.4

1,402 21
986 2019 2020 2021 2022 2023
-0.5 -0.1
2019 2020
-7 2021 2022
-2 2023

-6.4

-99
2019 2020 2021 2022 2023

Return on Capital Employed

13.7%
Asset Turnover Ratio Return on Equity
21.7%
1.4
1.2 6.5%
1.1 5.3%
3.8% 4.7%
0.9

0.6 2019 2020 2021 2022

-0.4% 2023
-1.3%

2019 2020 2021 2022 2023

-18.8% -3.1%
2019 2020 2021 2022 2023

RETURN ON EQUITY (ROE)

Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
NET PROFIT ₹ 21.3 -₹ 7.3 -₹ 99.4 -₹ 1.7 ₹ 111.6
AVERAGE SHAREHOLDERS EQUITY ₹ 563.0 ₹ 580.3 ₹ 529.1 ₹ 471.7 ₹ 514.0
RETURN ON EQUITY 3.78% -1.26% -18.79% -0.35% 21.71%

ROE - DUPONT EQUATION

Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
NET PROFIT ₹ 21.3 -₹ 7.3 -₹ 99.4 -₹ 1.7 ₹ 111.6
REVENUE ₹ 1,402.0 ₹ 1,547.8 ₹ 986.0 ₹ 1,576.5 ₹ 2,278.2
NET PROFIT MARGIN (A) 1.52% -0.47% -10.08% -0.11% 4.90%

REVENUE ₹ 1,402.0 ₹ 1,547.8 ₹ 986.0 ₹ 1,576.5 ₹ 2,278.2

AVERAGE TOTAL ASSETS ₹ 976.6 ₹ 1,393.5 ₹ 1,743.3 ₹ 1,760.6 ₹ 1,948.2
ASSET TURNOVER RATIO (B) 1.44 1.11 0.57 0.90 1.17

AVERAGE TOTAL ASSETS ₹ 976.6 ₹ 1,393.5 ₹ 1,743.3 ₹ 1,760.6 ₹ 1,948.2

AVERAGE SHAREHOLDERS EQUITY ₹ 563.0 ₹ 580.3 ₹ 529.1 ₹ 471.7 ₹ 514.0
EQUITY MULTIPLIER (C) 1.73 2.40 3.29 3.73 3.79

RETURN ON EQUITY (A*B*C) 3.78% -1.26% -18.79% -0.35% 21.71%

Asia Pacific Region - Oct 27, 2023

Westlife Foodworld Ltd.

RETURN ON ASSETS (ROA)

Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
NET PROFIT ₹ 21.3 -₹ 7.3 -₹ 99.4 -₹ 1.7 ₹ 111.6
AVERAGE TOTAL ASSETS ₹ 976.6 ₹ 1,393.5 ₹ 1,743.3 ₹ 1,760.6 ₹ 1,948.2
RETURN ON ASSETS (ROA) 2.18% -0.53% -5.70% -0.09% 5.73%

ROC - DUPONT EQUATION

Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
NET PROFIT ₹ 21.3 -₹ 7.3 -₹ 99.4 -₹ 1.7 ₹ 111.6
REVENUE ₹ 1,402.0 ₹ 1,547.8 ₹ 986.0 ₹ 1,576.5 ₹ 2,278.2
NET PROFIT MARGIN (A) 1.52% -0.47% -10.08% -0.11% 4.90%

REVENUE ₹ 1,402.0 ₹ 1,547.8 ₹ 986.0 ₹ 1,576.5 ₹ 2,278.2

AVERAGE TOTAL ASSETS ₹ 976.6 ₹ 1,393.5 ₹ 1,743.3 ₹ 1,760.6 ₹ 1,948.2
ASSET TURNOVER RATIO (B) 143.57% 111.07% 56.56% 89.54% 116.94%

RETURN ON ASSET (A*B) 2.18% -0.53% -5.70% -0.09% 0.057272499

RETURN ON CAPITAL EMPLOYED (ROCE)

Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
NOPAT ₹ 27.2 ₹ 67.3 -₹ 60.8 ₹ 49.3 ₹ 171.7
AVERAGE CAPITAL EMPLOYED ₹ 665.1 ₹ 1,100.2 ₹ 1,391.4 ₹ 1,396.1 ₹ 1,563.7
RETURN ON CAPITAL EMPLOYED 4.08% 6.12% -4.37% 3.53% 10.98%

ROCE - DUPONT EQUATION

Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
NOPAT ₹ 27.2 ₹ 67.3 -₹ 60.8 ₹ 49.3 ₹ 171.7
REVENUE ₹ 1,402.0 ₹ 1,547.8 ₹ 986.0 ₹ 1,576.5 ₹ 2,278.2
NOPAT MARGIN (A) 1.94% 4.35% -6.16% 3.12% 7.53%

REVENUE ₹ 1,402.0 ₹ 1,547.8 ₹ 986.0 ₹ 1,576.5 ₹ 2,278.2

AVERAGE CAPITAL EMPLOYED ₹ 665.1 ₹ 1,100.2 ₹ 1,391.4 ₹ 1,396.1 ₹ 1,563.7
CAPITAL TURNOVER RATIO (B) 210.81% 140.68% 70.87% 112.92% 145.69%

RETURN ON CAPITAL EMPLOYED (A*B) 4.08% 6.12% -4.37% 3.53% 10.98%

Dupont Summary

• Westlife's ROE has seen a decrease to -0.85% during COVID-19, but it has since rebounded and is currently at 14.00% as
of October 15th, 2023.
• However, the ROE has not shown any significant changes over the past six years, ranging between -0.24% to 2.49%. That
being said, the company delivered an excellent return of 14.00% in Q3
• Additionally, Westlife has been able to increase its net margins, with a net margin increase from -1.30% to 4.90% in FY23.
The ROA of Westlife has also seen a recovery, from -1.41% to -0.09%, and a significant increase to 4.90% in plate
• However, during COVID, the ROA hit a low of -5.70% and recovered and stood at 5.73% in FY 23.
Source: company analysis
Asia Pacific Region - Oct 27, 2023

Westlife Foodworld Ltd.

Exhibit: 19 peer comparison

PEER COMPARISON (DUPONT EQUATION)
Westlife jubilant Devyani sapphire
NET PROFIT MARGIN (A) 4.90% 6.68% 8.76% 10.29%
ASSET TURNOVER RATIO (B) 1.17 1.22 1.14 0.95
EQUITY MULTIPLIER (C) 3.79 1.55 3.17 2.10

RETURN ON EQUITY (A*B*C) 21.71% 12.63% 31.66% 20.53%

PEER COMPARISON
Westlife AVERAGE MEDIAN
NET PROFIT MARGIN (A) 4.90% 8.58% 8.76%
ASSET TURNOVER RATIO (B) 1.17 1.10 1.14
EQUITY MULTIPLIER (C) 3.79 2.27 2.10

RETURN ON EQUITY (A*B*C) 21.71% 21.51% 20.97%

Dupont Summary
It appears that Jubilant Food has consistently shown growth in every parameter. Westlife net profit margin is significantly
lower compared to its industry peers. The average net profit margin for the industry peers is 8.58%, while the median is
8.76%.
Source: company analysis

Exhibit: 20 Relative Valuation

Comparable Company Valuation

Amount in Cr. Market Data Financials Valuation

Company Ticker Share Shares Equity Net Enterprise Reven EBITD Net EV/ EV/ P/E
Price Outstanding Value Debt Value ue A Income Revenue EBITDA

Westlife Food WESTLIFE 826 15.6 12,879 1,237 14,118 2,397 120 108 5.9x 117.8x 119.6x
Jubilant Food. JUBLFOOD 507 66.0 33,452 2,351 35,805 5,305 902 235 6.7x 39.7x 142.3x
Devyani Intl. DEVYANI 186 120.6 22,424 1,480 23,903 3,140 408 186 7.6x 58.6x 120.5x
Sapphire Foods SAPPHIRE 1,307 6.4 8,322 849 9,170 2,454 196 208 3.7x 46.7x 40.0x

High 7.6x 117.8x 142.3x

75th Percentile 7.0x 73.4x 125.9x
Average 6.0x 65.7x 105.6x
Median 6.3x 52.6x 120.0x
25th Percentile 5.4x 45.0x 99.7x
Low 3.7x 39.7x 40.0x

Westlife Food Comparable EV/Reve EV/EBIT

Valuation nue DA P/E

Implied Enterprise Value 15,149 6,309 14,160

Net Debt 1,237 1,237 1,237
Implied Market Value 13,912 5,073 12,923
Shares
Outstanding 15.6 15.6 15.6

Implied Value per Share 892 325 829

Source: company analysis Undervalued Overvalued Undervalued

Asia Pacific Region - Oct 27, 2023

Westlife Foodworld Ltd.

Exhibit: 21 revenue & growth Exhibit: 22 EBITDA vs EBITDA growth

Revenue vs Revenue Growth% EBITDA vs EBITDA growth %

2,500 2,278 80.0% EBITDA EBITDA growth %

60.0%
2,000 450 250.0%
223.8% 382
1,576 40.0% 400 200.0%
1,548
1,402 350
1,500 20.0% 150.0%
300
986 250 219 93.5% 100.0%
1,000 0.0% 75.6% 197
200 47.4% 50.0%
-20.0% 125
150
0.0%
500 100 61
-40.0% -50.0%
50 -72.1%
0 -60.0% 0 -100.0%
FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23

Source: company analysis

Source: company analysis

Exhibit: 23 Westlife vs peers PAT margin Exhibit: 24 EPS vs EPS growth %

PAT vs PAT % EPS vs EPS growth %

PAT PAT growth % EPS EPS growth %

150.00 20.0 1253.8%

7.2
111.58 10.0 65.6%
1.4 -134.5% -98.3%
100.00
-
-10.0 FY19 -0.5
FY20 FY21 -0.1
FY22 FY23
50.00 1254.6% -6.4
65.6% -134.5% -98.3% -20.0
21.29
0.00 -7.34 -1.67 -30.0
FY19 FY20 FY21 FY22 FY23
-6781.4% -40.0
-50.00
-50.0
-60.0 -6781.4%
-100.00 -99.43
-70.0
-150.00 -80.0

Source: company analysis Source: company analysis

Exhibit: 25 EV/EBITDA vs EBITDA margin % Exhibit: 26 Revenue vs Debt

EV/EBITDA vs EBITDA margin % Revenue vs Debt

EV/EBITDA EBITDA margin % Revenue Debt

133.12 16.8%
140.00 18.0% 2,500 1,400
1,203
120.00 14.1% 16.0% 1,055 1,200
12.5%
2,278

14.0% 2,000 966 968

100.00 1,000
12.0%
80.00 8.9% 1,500
10.0% 800
1,576
1,548

55.34 6.2%
1,402

60.00 8.0% 600

43.07 1,000
30.95 6.0%
40.00 27.39
986

400
4.0% 500
20.00 234 200
2.0%
0.00 0.0% 0 0
FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23

Source: company analysis Source: company analysis

Asia Pacific Region - Oct 27, 2023

Westlife Foodworld Ltd.

Peers Comparison

Exhibit: 27 Peers Stock performance

Peers Stock performance (1Y) Indexed

WESTLIFE JUBLFOOD DEVYANI SAPPHIRE

140

130

120

110

100

90

80

70

60
09-Mar-23

23-Mar-23
12-Jan-23

26-Jan-23

04-May-23

18-May-23
01-Dec-22

15-Dec-22

29-Dec-22

09-Feb-23

23-Feb-23

07-Sep-23

21-Sep-23
03-Nov-22

17-Nov-22

06-Apr-23

20-Apr-23

13-Jul-23

27-Jul-23

02-Nov-23
01-Jun-23

15-Jun-23

29-Jun-23

10-Aug-23

24-Aug-23

05-Oct-23

19-Oct-23
Source: Yahoo Finance

Exhibit: 28 Peers Stock performance

Name CMP Mktcap PEG P/E Debt Intrest EBITDA ROCE ROE CFO/EBITD
Ratio Ratio Coverage (%) A
1 Jubilant Food. 507 33,454 11.1 142.4 2,608 2.6 17.0% 16.2% 18.1% 0.8
2 Devyani Intl. 186 22,423 1.8 96.3 1,565 2.6 13.0% 18.4% 33.9% 0.9
3 Sapphire Foods 1,307 8,321 0.7 40.0 1,070 2.1 8.0% 9.8% 20.7% 1.2

Source: Scrrnerr
Asia Pacific Region - Oct 27, 2023

Westlife Foodworld Ltd.

Analyst Coverage Universe

Exhibit: 29 Peers Stock performance

DATE Research House Rating Price at Reco Target

1 27-Oct-23 HDFC Securities Accumulate 820.35 850
2 27-Oct-23 Axis Direct Buy 820.35 1000
3 27-Oct-23 ICICI Securities Limited Accumulate 820.35 950
4 27-Oct-23 Edelweiss Buy 820.35 1034
5 26-Oct-23 Prabhudas Lilladhar Hold 820.35 844
6 05-Oct-23 Prabhudas Lilladhar Hold 820.35 958
7 28-Jul-23 HDFC Securities Accumulate 820.35 850
8 28-Jul-23 Edelweiss Buy 820.35 1034
9 28-Jul-23 Axis Direct Buy 820.35 1040
10 27-Jul-23 ICICI Securities Limited Accumulate 820.35 1000
11 27-Jul-23 Prabhudas Lilladhar Accumulate 820.35 932
12 10-May-23 HDFC Securities Accumulate 820.35 750
13 10-May-23 ICICI Securities Limited Accumulate 820.35 850
14 10-May-23 Axis Direct Buy 820.35 930
15 10-May-23 Edelweiss Buy 820.35 875
16 09-May-23 Prabhudas Lilladhar Accumulate 820.35 800
17 09-May-23 Motilal Oswal Neutral 820.35 800
18 03-Apr-23 ICICI Securities Limited Accumulate 820.35 790
19 17-Feb-23 ICICI Securities Limited Accumulate 820.35 790
20 17-Feb-23 Motilal Oswal Neutral 820.35 745
21 16-Feb-23 Prabhudas Lilladhar Buy 820.35 852
22 01-Feb-23 ICICI Securities Limited Accumulate 820.35 825
23 01-Feb-23 Axis Direct Buy 820.35 930
24 31-Jan-23 Motilal Oswal Neutral 820.35 800
25 05-Dec-22 Axis Direct Buy 820.35 930
26 03-Dec-22 Edelweiss Buy 820.35 875
27 02-Dec-22 ICICI Securities Limited Accumulate 820.35 850
28 01-Dec-22 Prabhudas Lilladhar Buy 820.35 847
29 10-Nov-22 ICICI Securities Limited Accumulate 820.35 850
30 10-Nov-22 Axis Direct Buy 820.35 930
Source: Trendlyn

Disclaimer: This is an academic project and isn’t meant for commercial usage.

This information/document does not constitute an offer to sell or a solicitation for the purchase or sale of any financial instrument or as an official
confirmation of any transaction.
The information contained herein is obtained from publicly available data or other sources believed to be reliable and the Author Has not independently
verified the accuracy and completeness of the said data and hence it should not Be relied upon as such.
The author is not SEBI registered investment analyst. This document is prepared as part of the academic Project.
Investments in the securities market are subject to market risks, read all the related documents carefully Before investing.
The securities quoted are for illustration only and are not recommendatory Registration granted by SEBI, and certification from NISM in no way guarantees
the performance of the intermediary or provides any assurance of returns to investors.