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Shares of Speciality Restaurants hit an over seven-year high of Rs 209.90, surging 13 per cent on the BSE in Monday’s intra-day trade. The stock was trading at its highest level since April 2015. It had hit a record high of Rs 227 on June 14, 2012.
In the past seven weeks, the share price of the company, primarily engaged in the business of operating restaurant outlets/sweet shops, has more-than-doubled or zoomed 102 per cent from a level of Rs 104.10 on June 20, 2022. In the past one month, it has rallied 58 per cent as compared to a 8 per cent rise in the S&P BSE Sensex.
Speciality Restaurants is engaged in the business of operating restaurants and confectionaries with restaurants across India, Qatar, UAE and United Kingdom.
Its brands, Mainland China, Asia Kitchen by Mainland China, Riyasat, Barishh, Episode One, Oh! Calcutta, Sigree/Sigree Global Grill, Haka, Flame & Grill, Café Mezzuna, and Hoppipola offer a variety of cuisines and dining formats. Sweet Bengal and Dariole are company’s confectionary brands.
The food and beverages industry in India has a strong potential and there are significant growth opportunities in the domestic markets, analysts say.
In the challenging macro-environment, Speciality Restaurants has delivered an encouraging performance across all parameters during the financial year 2021-22 (FY22). The company posted a consolidated net profit of Rs 8.15 crore in FY22 vs a net loss of Rs 29.34 crore in FY21. Revenue from operations grew 68.5 per cent to Rs 253 crore from Rs 150 crore.
For the April-June quarter (Q1FY23), Speciality Restaurants reported a profit of Rs 15.03 crore against a loss of Rs 8.57 crore in Q1FY22. Consolidated revenue from operations more-than-doubled to Rs 89.97 crore from Rs 30.43 crore in the corresponding quarter of previous fiscal.
On Q1FY23 performance, the management said that some tactical measures of cost controls and stream-lining business processes have led to rationalization of the costs, which resulted into savings and hence improved profitability.
Establishing kitchen within kitchen in existing restaurants has resulted into sweating of assets thus improving profitability, it said.
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