Rakesh Jhunjhunwala-backed Barbeque-Nation Hospitality share value surged 20 per cent once more on Friday to Rs 839 apiece. The stock hit the 20 per cent upper circuit for the third straight day considering the fact that listing. The newly-listed casual dining company’s shares created a weak listing earlier this week at Rs 492 per share, as against the IPO value of Rs 500 per share. However, the shares surged to hit a 20 per cent upper circuit on the listing day in the noon bargains. As the stock has rallied 68 per cent from the IPO value, analysts have advised investors to sell the Barbeque-Nation Hospitality stock. “Whoever has the stock should sell. The stock price move indicates an extreme speculative activity,” Investment advisor Sandip Sabharwal told TheSpuzz Online. He also added that valuations, even in a no lockdown typical financial situation, are prohibitive.
Barbeque-Nation Hospitality is the eighteenth stock to list on the stock exchanges this calendar year 2021 and the initial to debut in the new economic year 2021-22. Since listing, the total industry capitalisation of casual dining restaurant chains firm has rallied 43 per cent to Rs 2,648.84 crore from Rs 1,847 crore on debut day. Barbeque Nation Hospitality has reported a net loss in 3 out of the 4 preceding fiscals. Analysts think that the second COVID-19 pandemic wave has raised the threat of additional slower development in the close to term.
Last month, Barbeque Nation Hospitality raised Rs 452-crore from the challenge and was subscribed almost 6 instances. Upon listing, Barbeque-Nation Hospitality has joined the likes of Jubilant FoodWorks, Westlife Development, Speciality Restaurants and Burger King India. As of December 31, 2020, the firm had 147 Barbeque Nation Restaurants, six International Barbeque Nation Restaurants and 11 Italian Restaurants of which nine are operated below ‘Toscano’ brand name and one every below the brand names ‘La Terrace’ and ‘Collage’. respectively.
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