BSE:505533

Stock Analysis Report

Executive Summary

Westlife Development Limited, through its subsidiary, Hardcastle Restaurants Private Limited, owns and operates a chain of McDonald's restaurants in Western and Southern India.

Snowflake

Fundamentals

Reasonable growth potential with questionable track record.

Share Price & News

How has Westlife Development's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.3%

505533

-0.6%

IN Hospitality

2.3%

IN Market


1 Year Return

-4.2%

505533

-9.5%

IN Hospitality

0.3%

IN Market

Return vs Industry: 505533 exceeded the Indian Hospitality industry which returned -9.5% over the past year.

Return vs Market: 505533 underperformed the Indian Market which returned 0.3% over the past year.


Shareholder returns

505533IndustryMarket
7 Day-1.3%-0.6%2.3%
30 Day12.7%2.5%2.2%
90 Day4.9%-6.4%-2.7%
1 Year-4.2%-4.2%-9.1%-9.5%2.3%0.3%
3 Year57.7%57.7%16.4%13.3%20.7%14.7%
5 Year5.2%5.2%48.6%43.6%41.4%28.2%

Price Volatility Vs. Market

How volatile is Westlife Development's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Westlife Development undervalued compared to its fair value and its price relative to the market?

160.87x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: 505533 (₹319.3) is trading above our estimate of fair value (₹48.64)

Significantly Undervalued: 505533 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 505533 is poor value based on its PE Ratio (160.9x) compared to the Hospitality industry average (19.8x).

PE vs Market: 505533 is poor value based on its PE Ratio (160.9x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

Low PEG Ratio: 505533 is poor value based on its PEG Ratio (4.2x)


Price to Book Ratio

PB vs Industry: 505533 is overvalued based on its PB Ratio (8.5x) compared to the IN Hospitality industry average (1.1x).


Next Steps

Future Growth

How is Westlife Development forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

38.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 505533's forecast earnings growth (38.2% per year) is above the savings rate (7.6%).

Earnings vs Market: 505533's earnings (38.2% per year) are forecast to grow faster than the Indian market (18.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 505533's revenue (14.8% per year) is forecast to grow faster than the Indian market (11.4% per year).

High Growth Revenue: 505533's revenue (14.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 505533's Return on Equity is forecast to be low in 3 years time (12%).


Next Steps

Past Performance

How has Westlife Development performed over the past 5 years?

65.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 505533 has become profitable over the past 5 years, growing earnings by 65.8% per year.

Accelerating Growth: 505533's earnings growth over the past year (10.9%) is below its 5-year average (65.8% per year).

Earnings vs Industry: 505533 earnings growth over the past year (10.9%) underperformed the Hospitality industry 20.6%.


Return on Equity

High ROE: 505533's Return on Equity (5.2%) is considered low.


Return on Assets

ROA vs Industry: 505533 has a higher Return on Assets than the Hospitality industry average last year.


Return on Capital Employed

ROCE Improving: 505533's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Westlife Development's financial position?


Financial Position Analysis

Short Term Liabilities: 505533's short term assets (₹1.9B) do not cover its short term liabilities (₹4.4B)

Long Term Liabilities: 505533's short term assets (1.9B) exceeds its long term liabilities (31.2M)


Debt to Equity History and Analysis

Debt Level: 505533's debt to equity ratio (40.1%) is considered high

Reducing Debt: 505533's debt to equity ratio has increased from 10.4% to 40.1% over the past 5 years.

Debt Coverage: 505533's debt is well covered by operating cash flow (49.1%).

Interest Coverage: 505533's interest payments on its debt are not well covered by EBIT (1.4x coverage).


Balance Sheet

Inventory Level: 505533 has a high level of physical assets or inventory.

Debt Coverage by Assets: 505533's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

What is Westlife Development's current dividend yield, its reliability and sustainability?

0.16%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.5%industryaverage0.5%forecastin3Years0.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 505533's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 505533's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 505533's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 505533's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 505533 is not paying a notable dividend for .


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 505533's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

What is the CEO of Westlife Development's salary, the management and board of directors tenure and is there insider trading?

5.8yrs

Average management tenure


CEO

Amit Jatia (52yo)

5.8yrs

Tenure

₹410,000

Compensation

Mr. Amit Jatia, B.Com., B.Sc., has been the Managing Director of Hardcastle Restaurants Private Ltd. since 1995. Mr. Jatia has been Chief Executive Officer of Westlife Development Limited since 2014. He se ...


Management Age and Tenure

5.8yrs

Average Tenure

Experienced Management: 505533's management team is seasoned and experienced (5.8 years average tenure).


Board Age and Tenure

6.1yrs

Average Tenure

52.5yo

Average Age

Experienced Board: 505533's board of directors are considered experienced (6.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Amit Jatia (52yo)

    CEO & Vice Chairman

    • Tenure: 5.8yrs
    • Compensation: ₹410.00k
  • Suresh Lakshminarayanan

    Chief Financial Officer

    • Tenure: 5.1yrs
  • Shatadru Sengupta

    Company Secretary & Compliance Officer

    • Tenure: 5.9yrs
  • Ankit Arora

    Senior Manager of Investor Relations

    • Tenure: 0yrs

Board Members

  • Manish Chokhani (53yo)

    Independent Non-Executive Director

    • Tenure: 6.1yrs
    • Compensation: ₹375.00k
  • Amit Jatia (52yo)

    CEO & Vice Chairman

    • Tenure: 5.8yrs
    • Compensation: ₹410.00k
  • Tarun Kataria (61yo)

    Independent Non-Executive Director

    • Tenure: 5.2yrs
    • Compensation: ₹220.00k
  • Banwari Jatia (76yo)

    Non-Executive Chairman

    • Tenure: 6.9yrs
    • Compensation: ₹155.00k
  • Padmanabh Barpande (72yo)

    Independent Non-Executive Director

    • Tenure: 6.9yrs
    • Compensation: ₹595.00k
  • Smita Jatia (49yo)

    Non-Executive Director

    • Tenure: 6.1yrs
    • Compensation: ₹270.00k
  • Achal Jatia (48yo)

    Non-Executive Director

    • Tenure: 5.2yrs
    • Compensation: ₹205.00k
  • Amisha Jain (42yo)

    Non-Executive Independent Director

    • Tenure: 0.5yrs

Company Information

Westlife Development Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Westlife Development Limited
  • Ticker: 505533
  • Exchange: BSE
  • Founded: 1982
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: ₹49.972b
  • Shares outstanding: 155.65m
  • Website: https://www.westlife.co.in

Number of Employees


Location

  • Westlife Development Limited
  • Indiabulls Finance Centre
  • 1001, Tower-3, 10th Floor
  • Mumbai
  • Maharashtra
  • 400013
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
505533BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 2005
WESTLIFENSEI (National Stock Exchange of India)YesEquity SharesININRJul 2005

Biography

Westlife Development Limited, through its subsidiary, Hardcastle Restaurants Private Limited, owns and operates a chain of McDonald's restaurants in Western and Southern India. The company operates restaur ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 12:30
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.