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Updated Dec 15, 2020 | 10:59 IST

Representational image

New Delhi: Despite the 130% gains made by Burger King India shares on its listing day analysts are hopeful that the stock has more upside to come. Burger King shares closed at Rs 138.40 a piece as compared to its issue price of Rs 60. This is the third-best closing on the listing day by any company in India. Prior to this Salasar Techno and Astron Paper has registered 151.9% and 139.4% gains on the listing date in July and December of 2017.

According to a report in the Economic Times, some analysts are betting on more upsides for Burger King over the next few months.

Sanjiv Bhasin, director, IIFL Securities, said the stock can rise 30-40% more in the next few months but also sounded out caution about the frothiness in the broader market.

“There will always be demand for a good quality company. There is history of Dominos being a big wealth creator,” said Bhasin. “There is a lot of left out feeling and there is a lot of froth in small-caps now. However, Burger King is a quality midcap that can gain 30-40% in 3-4 months,” the business daily quoted Bhasin as saying.

The Rs 810-crore IPO of Burger King got a robust response from investors earlier this month, getting fully subscribed within a few hours of opening for subscription on December 2. The IPO, priced at Rs59-Rs60, was subscribed over 156 times. The QIB portion was subscribed 86.6 times, non-institutional investors’ quota was subscribed 354.1times and retail individual investors’ bid for 68.1 times the number of shares set aside for them.

Angel Broking, Choice Broking and ICICIdirect had recommended a subscribe rating to the IPO.

Benefiting from reduced competition from un-organised smaller local restaurants due to Covid-related disruptions and expansion of food delivery businesses, the company is well positioned to expand its footprint in India, said ICICIdirect in its pre-IPO note.

Meanwhile some analysts expect profit booking to set in the stock after the strong debut. As of 9:55 am, Burger King shares traded 15.19% higher at Rs 155.50 apiece in a day when the broader Sensex is down over 0.50%.

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