Buy Sapphire Foods india Ltd for the Target Rs. 375 by Motilal Oswal Financial Services Ltd
* Revenue is expected to grow 9% YoY, mainly led by store additions.
* PH same-store sales expected to decline 7% YoY despite a weak base. We expect three store addition, taking the total count to 339 in 2Q (5% YoY); revenue to decline 4% YoY.
* KFC revenue is expected to grow 9% YoY, led by store additions (15% YoY). We model 18 store addition and a 2.5% YoY fall in same-store sales; however, same-store transaction growth will be positive, led by value portfolio.
* Margin pressure will persist due to lower demand given extended monsoon and negative operating leverage.
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