Ashish Kacholia stock: This restaurant share can give 31% return in one year— Here's why!

Ashish Kacholia recently added restaurant stock can give up to 31% return in 12 months. It is one of the three stocks added by the celebrity investor in April-June quarter. Other two stocks are Repro India and Inflame appliances. The celebrity investor had bought 3.6% stake or 457,962 shares in Repro India and 4.2% stake or 308,000 shares of Inflame Appliances. 

As per the latest corporate filings, Kacholia bought 409,094 shares or 1.1% stake in Barbeque Nation in the June quarter. 

Brokerage firm IIFL Securities has maintained a buy stance on Barbeque Nation with a target price of Rs 1565. It translates into an upside of around 31% on Wednesday's closing price of Rs 1196.20.  

The brokerage's bullishness comes in the backdrop of strong q1 numbers posted by one of the leading casual dining chains, Barbeque Nation, on Monday. The company has reported a net profit of Rs 16.02 crore for the first quarter ended June 30, 2022, against a net loss of Rs 43.85 crore in the April-June period previous year. 

BBQ Nation sales/Ebitda/PAT at 6.4%/7.7%/5.3% beat the estimate of the brokerage. "Three-year sales Cagr was 14%, higher than Jubilant’s 9.7% and Westlife’s 12.1%. Adjusted Ebitda margins stood at 13.7% despite cost inflation. Sales per store stood at Rs.66.3m, annualised," it said.  

About triggers for the stock going forward, it said continued delivery on sales per store, recovery of Ebitda margin in Q3, and launch of the new biryani brand would be the main stock triggers. 

As per the latest corporate filings, Ashish Kacholia has 38 stocks in his portfolio in the recently concluded quarter. His diverse portfolio includes shares from hospitality, education, infra and manufacturing sectors largely. The net worth of these stocks has been pegged at a little over Rs 1,777.15 crore as on August by stock analysis platform trendlyne.com.   

Meanwhile, Shares of Barbeque Nation has given around 30% return in the past one year as on August 3. The stock closed with a marginal cut of less than one per cent to Rs 1196.20 a share on Wednesday. The stock traded on 52-week high value of Rs 1,949.70 per share on November 9, 2021, while touched year-low of Rs 879.25 a share on May 26 this year.