No buyers for Burger King India shares; more profit-booking ahead likely, say analysts

Burger King India's stock price has corrected over 42 percent from an all-time high of Rs 213.80. However, even after such a huge correction, the stock is still offering 150 percent return from its issue price of Rs 60 per share.

The company had made a stellar debut on the bourses on December 14, 2020, when the share was listed at Rs 112.50 apiece, an 87.50 percent premium over the issue price.

Burger King's ‘Whopper’ listing: Stock debuts at Rs 112.5 apiece on NSE, an 87.5% premium

The Rs 810 crore-initial public offering (IPO) of Burger King India had received an overwhelming response and was subscribed 156.65 times. It received over 1,100 crore bids compared to 7.45 crore shares on offer.

Analysts are of the view that the stock price may continue to witness profit booking in the short term and it may correct more from the current level as anchor investors' 30-day lock-in period from the date of allotment is over.

However, experts are optimistic about the long-term prospects of the company and believe it deliver better performance going ahead.

"Looking at the current run rate, we believe management will be able to achieve the target of 700 stores by Dec’26. As the store count will increase, operating leverage will kick in and the company will report better margins," said Keshav Lahoti, Associate Equity Analyst, Angel Broking.

Lahoti believes there is ample scope available for the company to increase its business in India.

"The long term prospects of the company are promising," he added.