Sapphire Foods Stock Hits New Heights Amid Market Buzz
Sapphire Foods Share Price Surge
Sapphire Foods’ stock surged over 12 percent on September 24 to hit a fresh record high of Rs 401 on NSE, driven by heavy volumes. A significant trade occurred with 8.5 lakh shares or 1.3 percent equity changing hands for Rs 30.5 crore at a price of Rs 355 per share.
On the day of trading, a total of 61 lakh shares of the company traded on BSE and NSE combined, compared to the one-month average trading volume of 8 lakh shares. At 11:33 am, Sapphire Foods shares were trading over 9 percent higher at Rs 384.85 on NSE. The stock has rallied 36 percent so far this year, outperforming Nifty's returns of 19 percent. In the past 12 months, the counter has risen 31 percent, in line with Nifty’s performance.
Market Insights and Analyst Opinions
Sapphire Foods' stock has received several bullish calls from brokerages after the company reported in-line earnings for the quarter ended June 2024. Analysts maintain a positive outlook for the stock even as the Pizza Hut and KFC operator's consolidated net profit fell 68 percent on-year to Rs 8.52 crore in Q1 FY25.
Despite the disappointing earnings, revenue from operations rose 10 percent YoY to Rs 718 crore. The current challenges faced by the QSR industry persist, particularly regarding unit economics across dine-in and delivery formats.
- Motilal Oswal emphasized caution on QSRs for the near term but reiterated its buy rating on Sapphire Foods stock with a target price of Rs 1,850.
- JM Financial highlighted confidence in Sapphire's aggressive strategy for KFC while being cautious with Pizza Hut; they see positive signs in Sri Lanka.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.