KFC, Pizza Hut operator Sapphire Foods snap 2-days losing streak, stock rises over 6% in 1 day after block deal
food KFC, Pizza Hut, and Taco Bell restaurants operator, Sapphire Foods rallied more than 6% on Thursday after a block deal. Few of promoters and shareholders have announced their plan to sell a portion of their shareholdings in the company. Sapphire Foods stock snapped its 2-day losing streak and gained to more than the ₹1,400 mark in the early deals before correcting. However, the stock has maintained its upside on BSE.
On BSE, the company's stock hit an intraday high of ₹1,445.90 apiece -- rising by 6.32% from the previous day's closing of ₹1,359.95 apiece.
In the previous two trading sessions, Sapphire Foods stock tumbled by more than 2%. The stock so far witnessed a volatile sentiment.
The stock closed at ₹1,398.50 apiece up by ₹38.55 or 2.83% on BSE. Its market cap was more than ₹8,886 crore.
As per the data on BSE, at around 9.15 am, somewhat 181,835 equity shares exchanged hands. Further, at around 9.37 am, the stock witnessed a trade of 131,332 equity shares. The names of buyers or sellers were not revealed immediately.
After market hours, the regulatory data showed that a total of 72,91,793 equity shares exchanged on BSE, while around 14,03,775 equity shares exchanged hands on NSE.
However, on Wednesday, Sapphire Foods informed exchanges that shareholder WWD Ruby Limited has proposed to sell about 51.2% of its shareholding in the company. WWD Ruby holds around 62,07,342 equity shares in Sapphire Foods, of which, the former intends to sell up to 31,77,127 equity shares in one or more tranches by December 21, 2022.
Also, the company informed exchanges that shareholder and promoter, Sapphire Foods Mauritius is exploring opportunities for the potential sale of up to 40 lakh equity shares in Sapphire Foods in one or more tranches including through trade facilitated on stock exchanges.
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Another promoter and shareholder, Sagista Realty Advisors is also exploring opportunities to sell up to 1.50 lakh equity shares in the company also in one or more tranches.
As of September 30, 2022, WWD Ruby holds 62,07,342 equity shares or 9.77% stake in the company, while promoter Sagista Realty Advisors' shareholding is around 28,59,385 equity shares or 4.50% and Sapphire Foods Mauritius holds 2,41,70,043 equity shares or 38.04% in Sapphire Foods.
Sapphire Foods stock entered the market on November 18 last year. The company's IPO had fully subscribed by 6.62 times.
Compared to its IPO issue price of ₹1,180 per share, the company's stock has climbed by over 22.5% as of now on Dalal Street. Notably, the stock's 52-week high and low is at ₹1,572.95 apiece and ₹910 apiece respectively currently.
In Q2FY23, the company delivered a robust performance with revenue of ₹5,604 million which was the highest ever up by 36% yoy, while EBITDA of ₹1,032 million higher by a whopping 68% yoy, and PAT stood at Rs. 269 million which was 4.8% of revenue (up 600 bps yoy). During the quarter, India restaurant EBITDA grew by 40 bps yoy, however, due to the adverse Sri Lanka impact, consolidated restaurant EBITDA of 16.8% dropped by 50 bps (vs normalised EBITDA of Q2 FY22).
By end of the September 2022 quarter, the company owned and operates 301 KFC and 249 Pizza Hut restaurants in India, 99 Pizza Hut and 7 Taco Bell restaurants in Sri Lanka, and 1 KFC and Pizza Hut each in Maldives.
Sapphire Foods is one of the largest franchisees of Yum! Brands Inc. in the subcontinent, with a track record of successfully operating major fast food brands such as KFC, Pizza Hut, and Taco Bell restaurants across India, Sri Lanka, and the Maldives.
