Speciality Restaurants - Solid quarter; sustenance the key. We keep the faith - Kotak

Speciality Restaurants (SRL) delivered a strong quarter of revenue/EBITDA/PAT growth, largely on the back of (1) low base, (2) stability on some of the new restaurants opened in the past 12 months, and (3) sharp jump in net interest income driven by IPO proceeds. We expect strong growth in FY2014 (again, partly aided by low base in FY2013) and remain positive on the business potential in the medium term.

Retain ADD with a target price of Rs195/share (Rs190 earlier). Key risk is stretched macro weakness.

Source : Equity Bulls

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