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Below are Quote on barbeque Nation IPO By Mr. Jyoti Roy - DVP- Equity Strategist, Angel Broking Ltd

Barbeque Nation is India’s leading casual dining restaurant (CDR) chain (in terms of outlet count as of September 30, 2020), and International Barbeque Nation Restaurants. The company owns and operates Toscano Restaurants and UBQ by Barbeque Nation Restaurant. As of December 31, 2020, Barbeque Nation Restaurant network has expanded to 147 Restaurants chains across 77 cities in India and six International Barbeque Nation Restaurants in three countries outside India. While the company has posted revenue growth of 20% CAGR between FY18-FY20 it has been continuously incurring losses at PAT level despite topline growth. The Covid-19 pandemic too has had an adverse impact on the operations of the company hence we expect profits will remain under pressure over the medium term. At the higher end of the price band the company is asking for a valuation of 2.4x FY20 EV/Sales which we believe is expensive given the current environment and hence we recommend a "NEUTRAL" rating to the IPO.

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