Burger King's stock has fallen almost 20 per cent in the last 3 trading sessions. There are two big reasons behind this, said Devanshi Ashar, Senior research analyst, and anchor at Zee Business.

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The analyst said this stock has been trading at 105 for the past two days.

There are two reasons for this, according to Ashar - the first is that when the company's IPO came, a year after that, the firm had launched qualified institutional placement (QIP) and the sentiments were not very favorable. After that, the company had allotted 10.8 crore shares in the QIP, and when the QIP's shares were on the market the next day, there was a lot of selling. 

Burger King's market share was likewise dominated too. If the volume is averaged over 20 days, far higher volumes have been seen trading in a single day than that.

It has been seen that selling has grown significantly in the previous two trading sessions. As a result, there is a concern in the market that the shares that came with the QIP have been sold in the market. And as a result, a little pressure seems to be coming on this stock, she said.
The company would utilise the funds generated through QIP to purchase Burger King Indonesia, which is the second major reason. Burger King Indonesia's financials are similarly not promising. Their earnings have been steadily decreasing. The firm is losing money, has a negative cash flow, and faces stiff competition in the Indonesian QR market. As a result, it is expected that the corporation will have to boost discounts in the near future, putting greater pressure on sales and the losses may increase further.  

These are the two reasons why there is a big decline in this stock from the last two trading sessions.

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