Risk factor
Very poor trading liquidity
Profitability factor
Undervalued vs peers
About
Coffee Day Enterprises Limited, together with its subsidiaries, primarily operates Café Coffee Day outlets in India, Europe, and internationally. It operates through Coffee and Related Business, and Hospitality services segments. The company operates Coffee Day Square, a premium cafe; and Coffee Day Xpress, an on-the-go food and beverages kiosk, as well as offers semi-automatic and automatic vending machines. It also retails coffee products; develops technology parks/ special economic zones; owns and operates luxury resorts located in Chikmangalur, Bandipur, and Kabini, Karnataka under The Serai brand name; and provides facilities for information technology (IT)/IT-enabled services. In addition, the company offers investment services. Coffee Day Enterprises Limited was founded in 1993 and is based in Bengaluru, India.
Company Valuation
Based on key historical and expected multiples, the stock is undervalued relative to its peers. In particular, the stock is underpriced on P/E, of fair value on EV/EBITD.