Burger King India breaks 20% upper circuit again owing to higher volumes
Shares of fast-food chain Burger King India Ltd crashed through 20% upper circuit for the second day in a row on Wednesday with a precursor of heavy volumes. The stock registered a fresh record high of ₹199.25 apiece. The stock had listed on Monday, doubling from its issue price of ₹60 a share. From its issue price, the scrip has now soared up 232.08%.
Analysts say at current market price, valuations seem to be very stretched and hence have recommended investors to book part of its profit. On Monday, Basant Maheshwari Wealth Advisers and Valiant Mauritius Partners Offshore purchased 2.43 million and 2.5 million shares respectively in Burger King via an open market transaction, according to NSE bulk deal data. Both have purchased at ₹112.79 and ₹130.28 a share respectively.
“Burger King has received good investors’ interest and it is continuing after its listing as well. Going forward, the management plans remain intact as it is expected to gain market share by expanding its network, continue to build brand recall value, manage cost which will help to expand margins and also introduce new products on a timely basis,” said Ajit Mishra, VP Research, Religare Broking.
“The stock valuation seems to be fruitful as compared with its peers’ group. However, investors willing to make fresh investments can buy only on dips and existing investors holding the stock can continue to hold for long term,” Mishra added.