Motilal Oswal retains Buy on Sapphire Foods, sees nearly 34% upside
Motilal Oswal has retained its Buy rating on KFC operator Sapphire Foods with a Rs 240 target price, citing improving same-store sales and margins. The brokerage also sees potential scale synergies from the proposed merger with Devyani International.
Motilal Oswal retained a Buy on QSR operator Sapphire Foods with a Rs 240 target, citing improving KFC same-store sales and margins. It expects the proposed Devyani International-Sapphire merger to create scale synergies across brands and geographies.
Why this matters
The call follows Sapphire Foods’ ₹99 KFC meals initiative, which lifted transactions 12% and helped the company return to positive profit.
Retail-company signals are accelerating, up 569700% QoQ.