Burger King's IPO investors tripled their money in three days
Burger KingIndia’s dream run continues, with the stock surging 232% in three days. The stock was locked in a 20% upper circuit for the third straight session.
- The newly listed food chain surpassed the market cap of its rival McDonald’s and surged past ₹7,604 crore.
- Analysts believe there is more room for upside. IIFL Securities sees potential for 30-40% growth over next few months.
The newly listed food chain surpassed the market cap of its rival McDonald’s and surged past ₹7,604 crore. The McDonald’s operator in India, Westlife Development has a market cap of ₹7,311.72 crore.
Burger King India made its debut on Indian bourses on Monday. It opened at a premium of over 87% over the IPO price at ₹112.50 on listing day itself — defying analysts’ expectation who estimated Burger King to list at around 70-75% premium.
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According to analysts, there is ample scope for investors in Burger King, and they see room for more upside over the next few months.
Keshav Lahoti Associate Equity Analyst, Angel Broking said, “Such listing was in-line with our expectation as the company issue was priced at a significant discount compared to listed peers such as Jubilant FoodWorks (Domino’s Pizza) and Westlife Development (McDonald). Short term investors can book profit. We advise long term investors to stay invested in the company as there is ample scope available for the company to increase its business in India.”
IIFL Securities, Sanjiv Bhasin believes that the stock can still rise 30-40% more in the next few months. However, he also recommends caution, given the frothiness in the broader market.
“There is a lot of left out feeling and there is a lot of froth in small-caps now. However, Burger King is a quality midcap that can gain 30-40% in 3-4 months,” Bhasin added.
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