Mid-Cap CDGS Stock Hit 52-Week-High As Board Declares Rs 3.45/Dividend: Buy Ahead of 172% Dividend Payout?

Mid-cap consumer discretionary company Westlife Foodworld reported a market worth of Rs 14,620.57 Cr on Monday during the closing session. Westlife Foodworld Limited (WFL), which specialises in opening and running McDonald's restaurants in West and South India, is one of the Quick Service Restaurant (QSR) of India. The shares of Westlife Foodworld opened higher on the BSE at a fresh 52-week-high level of Rs 967.95 apiece. The scrip closed at Rs 937.40 apiece with a downside gap of 0.12%.

Westlife Foodworld Dividend

"We would like to inform you that the Board of Directors of the Company in its meeting held today i.e. 27th July, 2023 have declared payment by the Company of interim dividend of Rs. 3.45/- per equity share of face value of Rs. 2/- each i.e. of over 172%, for the financial year 2023-2024, to the members of the Company, and 8th August, 2023 has been fixed as the Record Date for the purpose of ascertaining the eligibility of shareholders for payment of the aforesaid interim dividend declared by the Board. Further, such interim dividend amount shall be paid to the shareholders on or before 26th August, 2023," said Westlife Foodworld in a stock exchange filing.

Westlife Foodworld Financials

For fiscal 2023-24 (Q1FY24), the firm recorded a consolidated net profit of Rs 288.3 crore, up from Rs 235.7 crore in the same quarter the previous year. In the first quarter of the current fiscal year, the company's revenue from operations totalled Rs 614.5 crore, up 14% from Rs 537.9 crore in Q1FY23. The company reported an EBITDA of Rs 1,053.0 Cr in the quarter under review up by 14.4% YoY from Rs 920.7 Cr in the year-ago quarter.

Four additional outlets were launched during the quarter under review, bringing the total number of Westlife restaurants operating as of June 2023 to 361 throughout 58 cities. The firm aims to open 40 to 45 more stores in FY24, with a goal of reaching 580 to 630 outlets by 2027.

Amit Jatia, Chairperson of Westlife Foodworld Limited, said, "We are pleased with our first-quarter performance, which reflects the resilience of our business model and the strength of the McDonald's brand in West & South India. Despite the challenging market conditions, we have been able to drive growth by focusing on core menu innovation, digital transformation, and enhancing customer convenience. Our commitment to serving good quality food and constantly improving the customer experience continues to be the cornerstone of our success. The first-quarter results reinforce our commitment to further strengthen our position as a leader in the QSR industry."

Westlife Foodworld Share Price Target

Ameya Ranadive, Research Analyst, Choice Broking said, "West Life, currently quoting at 937, has exhibited a period of consolidation within the range of 877 to 915 over the past few weeks. However, recent market activity has witnessed a significant breakout accompanied by substantial trading volumes. Notably, the stock is displaying a strong bullish momentum as it continues to trade above all its moving averages, including the short-term (20 EMA), mid-term (50 EMA), and long-term (100 and 200 EMA) indicators."

"Furthermore, the Bollinger Bands are signalling an expansion, indicating a notable increase in volatility. This surge in volatility could potentially be indicative of further upward movement in the stock price. Moreover, investors might consider a potential pullback to 915 as an opportune entry point to accumulate positions. With a strategic approach, targeting a possible upside towards 1025 seems plausible in the current market conditions," said Ameya Ranadive.

"In conclusion, based on the technical analysis and recent market behavior, West Life appears to be an attractive investment option at 937, with a potential buying opportunity around 915 and a target price of 1025. Nonetheless, investors are advised to exercise prudence and diligence in their investment strategies to mitigate inherent risks," Ameya Ranadive further added.

WESTLIFE is trading at 936 with 66 RSI (14) daily and 78 at the weekly time frame. According to price action, recently it broke its uptrend resistance trendline. Hence there is a high probability that it could take a small pull back before the next upside movement. For any fresh longs, one should wait for the price to come in the 900 to 840 range. Keep targets expectation 980 to 1350 with a strict stop loss at 790. said V.L.A. Ambala (SEBI Registered Research Analyst), Stock Market Today (SMT).

Disclaimer

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