Shares in Burger King, which listed on Monday and saw a spectacular listing gains, continued to gain momentum for the second day, with a huge surge of 16 per cent in the share price.
According to reports Basant Maheshwari Wealth Advisers acquired 24,31,959 equity shares in the company at Rs 112.79 per share and Valiant Mauritius Partners Offshore Ltd bought 25 lakh shares at Rs 130.28 per share on the NSE.
Some brokerages find the stock overvalued. "At the current market price of Rs 125, BKIL is valued at 5.7x FY20 Price/sales and 17.3x FY20 P/BV which fully captures its strong brand positioning, robust store expansion plans and the bright growth prospects of the QSR industry in India. However given its weak financials, the valuation seems a little stretched vs players like Jubilant Food and Westlife Development," Motilal Oswal has said in its latest report.
Since the brokerage report of Motilal Oswal, the stock has spurted to Rs 158, making it even more expensive. While the business model and brand is excellent, the price may not be the case.
The shares of Burger King India were last seen trading at Rs 158 on the NSE. The shares have already given excellent returns from the issue price of Rs 60 per share.