Stocks

Burger King hits 10% lower circuit for 2nd day; No impact on listing of Mrs Bector's Food, say analysts

Updated : December 18, 2020 01:41 PM IST

Burger King India shares hit a 10 percent lower circuit for the second consecutive day in a row.

On the other hand, Mrs Bectors Food Specialities' public issue was subscribed 198 times on Thursday.

Burger King India shares hit a 10 percent lower circuit for the second consecutive day in a row. The stock price of the quick-service restaurant chain was locked at Rs 161.45 per share on BSE, due to profit booking.

On Thursday, the stock had slipped 10 percent to Rs 175 per share on the NSE. This came after the stock witnessed a spectacular listing earlier this week.

However, despite the fall, Burger King shares are 169 percent up from its listing price.

In the case of Burger King, the valuation was unrealistic post-listing, so some amount of correction was expected, said Sudip Bandyopadhyay, Group Chairman, Inditrade Capital.

On the other hand, Mrs Bector's Food Specialities' public issue was subscribed 198 times on Thursday. Analysts do not expect any impact of profit-taking in the Burger King shares on Mrs Bector Food's listing.

Bandyopadhyay said, "I don't think this would impact the listing of Mrs Bector Food's shares in any way since it has been subscribed 198 times already. Mrs Bector and Burger King are two different segments. Mrs Bector is into confectionary and cookies, and that's a segment which has done exceedingly well during the pandemic, so I don't see that getting affected."

It's a different matter that these valuations are stretched, said Bandyopadhyay, even for Mrs Bector's Food and the listing may not happen at record levels if this trend continues.

Keshav Lahoti, Associate Equity Analyst, Angel Broking expects a good listing for Mrs Bector's Foods Specialities but it might not be like that of Burger King.

"I don't think the profit-taking in the market or in the Burger King shares will impact Mrs Bector's Foods. It might not have 100 percent listing as of Burger King, but it will have a stellar listing," Lahoti said.

Burger King hits 10% lower circuit for 2nd day; No impact on listing of Mrs Bector's Food, say analysts

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