Neutral on Westlife Development, target price Rs 440: Motilal Oswal

Motilal Oswal has neutral call on Westlife Development with a target price of Rs 440. The current market price of Westlife Development Ltd. is Rs 431.

Westlife Development Ltd., incorporated in the year 1982, is a Mid Cap company (having a market cap of Rs 4940.14 Crore) operating in Tourism & Hospitality sector.

Financials
For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 206.94 Crore, up 120.41 % from last quarter Sales of Rs 93.89 Crore and down -47.59 % from last year same quarter Sales of Rs 394.87 Crore. Company reported net profit after tax of Rs -32.54 Crore in latest quarter.

Investment Rationale
The brokerage initiates coverage on WLDL with a Neutral rating and TP of INR440 per share valuing the company at 22x FY23E EV-to-EBITDA (discount to JUBI). From a 3 year perspective, it arrives at a TP of INR810 per share (24.5% CAGR), assuming no multiple expansion.

Promoter/FII Holdings
Promoters held 59.1 per cent stake in the company as of Sept 30, 2020, while FIIs held 10 per cent, DIIs 19.4 per cent and public and other 11.5 per cent.