BURGER KING INDIA LIMITED

Started in 2014, Burger King India Limited is one of the fastest growing international QSR chains in India during the first five years of the operations based on number of restaurants. As the national master franchisee of the BURGER KING® brand in India, company has exclusive rights to develop, establish, operate and franchise Burger King branded restaurants in India. Company's master franchisee arrangement provides them with the ability to use Burger King’s globally recognised brand name to grow the business in India, while leveraging the technical, marketing and operational expertise associated with the global Burger King brand. The globally recognised Burger King brand, also known as the 'HOME OF THE WHOPPER®', was founded in 1954 in the United States and is owned by Burger King Corporation, a subsidiary of Restaurant Brands International Inc., which holds a portfolio of fast food brands that are recognized around the world that include the BURGER KING®, POPEYES® and TIMHORTONS® brands. The Burger King brand is the second largest fast food burger brand globally as measured by the total number of restaurants, with a global network of over 18,675 restaurants in more than 100 countries and U.S. territories as at September 30, 2020. Since opening the first restaurant in November 2014, company has used the well defined restaurant roll out and development process with the aim of growing quickly, consistently and efficiently into a pan-India QSR chain and capitalising on the growing market opportunity in India for QSR restaurants. As at September 30, 2020, they had 261 restaurants, including eight Sub-Franchised BurgerKing Restaurants, across 17 states and union territories and 57 cities across India. Out of 261 restaurants as of September 30, 2020, 226 were operational. The master franchisee arrangement provides them with flexibility to tailor the menu to Indian tastes and preferences, as well as the promotions and pricing. As per financial performance, Burger King has posted total income/net profits of Rs. 234.13 cr. / Rs. (71.77) cr. (FY17), Rs. 388.74 cr. / Rs. (81.42) cr. (FY18), Rs. 644.13 cr. / Rs.(38.5) cr and Rs 846.83 cr / Rs (77.58) cr (FY20). For upto H1 of FY21, company has posted loss of Rs 119 Cr on total revenue of Rs 151.65 Cr. So company has shown good growth, but with consistent loss. Company has posted an average EPS of Rs. (4.14) and average RoNW of (23.78)% for last three fiscals. Issue is priced at a P/BV of 4.51 as per NAV of 7.62 on 30.09.20. Company has posted losses so there is no PE for the company. As per RHP, the listed peers are shown in above table.  On BRLM's front, four BRLMs are associated with this IPO, and have handled around 34 IPOs in last three fiscals, and from last 10 IPOs, 6 opened below issue price and remaining opened above issue price on the day of listing. As of now, from last 10 IPOs, 2 are trading below issue price and remaining above issue price. ( As on 27.11.2020 ) As per financials, sales are improving, RoNW is (23.78)% for last three fiscals and company has posted losses on consistent basis. The QSR industry is growing at good rate, but current situation is not good for the sector and next some time will also remain very challenging. Burger King is well known international brand. Performance of BRLMs are average. So we give "SUBSCRIBE FOR LISTING GAIN" for this IPO and for risk taking investors only.

• 1 QSR ASIA PTE. LTD