APAC IPOs & Placements, Aequitas Research

Akshat Shah

APAC IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Travel Food Services / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/travel-food-services-ltd" target="_blank" data-smartkarma-citation="entities:44175:1" rel="noopener">Travel Food Services Ltd (1450229D IN)</a> is looking to raise about US$233m in its India IPO.</li>
<li>Travel Food Services Limited (TFS) operates a network of travel quick service restaurants (Travel QSRs) and private lounges in airports.</li>
<li>We have looked at the company’s past performance in our previous notes. In this note, we will talk about the RHP updates and IPO valuations.</li>
</ul>



Travel Food Services Ltd (1450229D IN) is looking to raise about US$233m in its India IPO.
Travel Food Services Limited (TFS) operates a network of travel quick service restaurants (Travel QSRs) and private lounges in airports.
We have looked at the company’s past performance in our previous notes. In this note, we will talk about the RHP updates and IPO valuations.


Travel Food Services IPO - RHP Updates & Thoughts on Valuation

India focused: IPO, special situations, Stylus Holdings

Himanshu Dugar

India focused: IPO, special situations

Stylus Holdings

Stylus Holdings is a buy-side equity research firm. We offer bottom-up investment ideas as well as provide on demand equity research and portfolio tracking. 
At Stylus, our focus is to identify market dislocations that can generate 20+% IRR with a reasonable margin of safety. As part of our research process, we do a deep dive into the fundamentals of the company, evaluate their competitive positioning and assess their valuation.
Our investment team is led by Himanshu Dugar. Himanshu is a Chartered Accountant and a CFA charter holder. He has 10+ years of active experience in the stock market with stints at CRISIL Research, a S&P Global copmany and Miras Investments, a single family office based in Dubai.

Equity Research Firm

<ul>
<li>TFS operates QSRs and lounge in airports. They are present in the top 14 airports in India accounting for 26% of Indian-airport QSR and ~45% of the Indian-airport Lounge revenues</li>
<li>FY26 performance is expected to be flattish as 1H results will lap impact of Adani operated airports being moved from TFS books to Joint venture with 25% stake.</li>
<li>FY27 onwards growth is estimated at 15+% with EBITDA margins of 34-37%. We estimate FY27 revenues of ~2,000cr with PAT of 450-500cr implying the deal is being priced at 30-33x</li>
</ul>


TFS operates QSRs and lounge in airports. They are present in the top 14 airports in India accounting for 26% of Indian-airport QSR and ~45% of the Indian-airport Lounge revenues
FY26 performance is expected to be flattish as 1H results will lap impact of Adani operated airports being moved from TFS books to Joint venture with 25% stake.
FY27 onwards growth is estimated at 15+% with EBITDA margins of 34-37%. We estimate FY27 revenues of ~2,000cr with PAT of 450-500cr implying the deal is being priced at 30-33x


Travel Food Services: $250M OFS, Niche Travel QSR but Valuations Seem Full Amidst near Term Weakness

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

<ul>
<li>
<a href="https://www.smartkarma.com/entities/guzman-y-gomez" target="_blank" data-smartkarma-citation="entities:43656:1" rel="noopener">Guzman Y Gomez</a> plans to raise around US$160m in its Australian IPO.</li>
<li>GYG is a quick service restaurant business with more than 200 restaurants globally. It mainly focuses on fresh, made-to-order, Mexican-inspired food.</li>
<li>In this note, we talk about the not-so-positive aspects of the deal.</li>
</ul>



Guzman Y Gomez plans to raise around US$160m in its Australian IPO.
GYG is a quick service restaurant business with more than 200 restaurants globally. It mainly focuses on fresh, made-to-order, Mexican-inspired food.
In this note, we talk about the not-so-positive aspects of the deal.


Guzman Y Gomez IPO - The Negatives - Lawsuits and Management Churn

Market & Forensics Analyst, Beat the Street

Nimish Maheshwari

Market & Forensics Analyst

Beat the Street

Beat The Street was founded by Nimish Maheshwari and Sudarshan Bhandari, both of whom are Chartered Accountants by Profession, known for their expert analysis in the fields of Business, Sectoral analysis, and Corporate governance.

With a strong social media presence of 45,000+ Subscribers across various platforms, they are considered trusted voices in the industry. Their insights and analysis have been featured in some of India’s most prominent publications, including the Economic Times, Dalal Street Investment Journal, The Morning Context, and The Ken.

Their analysis on Bankrupt & Insolvent companies has been instrumental in saving investors from significant losses. They have a keen eye for identifying red flags and has identified exclusive redflags earlier in Vedanta, Nykaa, Dhani Services, Adani and many more.

Read Business Not Stock Prices

Event-Driven

<ul>
<li>Devyani and Sapphire will merge via share swap to form a QSR powerhouse with over 3,000 stores, creating immediate scale parity with market leader Jubilant FoodWorks.</li>
<li>The combined entity projects Rs 78.3 billion in revenue and targets annualized cost synergies of up to Rs 2.25 billion through centralized procurement and streamlined overheads.</li>
<li>Strategic focus lies on accelerating KFC’s expansion and revitalizing Pizza Hut, though full synergistic benefits are expected to materialize 15 to 18 months post-merger.</li>
</ul>


Devyani and Sapphire will merge via share swap to form a QSR powerhouse with over 3,000 stores, creating immediate scale parity with market leader Jubilant FoodWorks.
The combined entity projects Rs 78.3 billion in revenue and targets annualized cost synergies of up to Rs 2.25 billion through centralized procurement and streamlined overheads.
Strategic focus lies on accelerating KFC’s expansion and revitalizing Pizza Hut, though full synergistic benefits are expected to materialize 15 to 18 months post-merger.


Thematic (Sector/Industry)

<ul>
<li>Q1 FY27 delivered positive SSSG/LFL for six of seven tracked brand KPIs. Burger King India led at 12.6%.</li>
<li>The recovery is largely transaction- and guest-count-led, creating better operating leverage than a price-only growth cycle.</li>
<li>Raw store additions are no longer enough. Investors should track mature-store sales, closure quality and pre-Ind AS restaurant margins together.</li>
</ul>


Q1 FY27 delivered positive SSSG/LFL for six of seven tracked brand KPIs. Burger King India led at 12.6%.
The recovery is largely transaction- and guest-count-led, creating better operating leverage than a price-only growth cycle.
Raw store additions are no longer enough. Investors should track mature-store sales, closure quality and pre-Ind AS restaurant margins together.


India QSR: Turnaround in Sector After 2 Years of Lag!

India

Devyani International is one of India's largest and fastest-growing Quick Service Restaurant (QSR) operators, functioning as the largest franchisee for Yum! Brands, operating KFC and Pizza Hut outlets, and the exclusive franchisee for Costa Coffee in India. The company also develops its own brands, including Vaango and The Food Street. Devyani International was founded in 1991 and is headquartered in Gurugram, Haryana, India.

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Devyani International (DEVYANI IN)

Travel Food Services IPO - RHP Updates & Thoughts on Valuation

Travel Food Services (TFS) is looking to raise about US$233m in its India IPO. In this note, we will talk about the RHP updates and IPO valuations.

Akshat Shah

Travel Food Services: $250M OFS, Niche Travel QSR but Valuations Seem Full Amidst near Term Weakness

TFS dominates Indian airport QSR and lounge market and is looking to grow aggressively across Asia, fair IPO valuation leaves limited room for...

Himanshu Dugar

Guzman Y Gomez IPO - The Negatives - Lawsuits and Management Churn

Guzman Y Gomez plans to raise around US$160m in its Australian IPO. In this note, we talk about the not-so-positive aspects of the deal.

Sumeet Singh

Biggest Merger in Indian QSR Industry..

Devyani and Sapphire to merge, creating QSR powerhouse with 3,000+ stores, targeting Rs 78.3 billion revenue and Rs 2.25 billion cost synergies,...

Nimish Maheshwari

India QSR: Turnaround in Sector After 2 Years of Lag!

Q1 FY27 saw positive sales growth for most brands, led by Burger King India. Recovery driven by transactions, not just prices. Investors should...

Nimish Maheshwari

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Travel Food Services IPO - RHP Updates & Thoughts on Valuation

Travel Food Services (TFS) is looking to raise about US$233m in its India IPO. In this note, we will talk about the RHP updates and IPO valuations.

Akshat Shah

Travel Food Services: $250M OFS, Niche Travel QSR but Valuations Seem Full Amidst near Term Weakness

​TFS dominates Indian airport QSR and lounge market and is looking to grow aggressively across Asia, fair IPO valuation leaves limited room for...

Himanshu Dugar

Guzman Y Gomez IPO - The Negatives - Lawsuits and Management Churn

Guzman Y Gomez plans to raise around US$160m in its Australian IPO. In this note, we talk about the not-so-positive aspects of the deal.

Sumeet Singh

Biggest Merger in Indian QSR Industry..

​Devyani and Sapphire to merge, creating QSR powerhouse with 3,000+ stores, targeting Rs 78.3 billion revenue and Rs 2.25 billion cost synergies,...

Nimish Maheshwari

India QSR: Turnaround in Sector After 2 Years of Lag!

​Q1 FY27 saw positive sales growth for most brands, led by Burger King India. Recovery driven by transactions, not just prices. Investors should...

Nimish Maheshwari

TFS dominates Indian airport QSR and lounge market and is looking to grow aggressively across Asia, fair IPO valuation leaves limited room for...

Devyani and Sapphire to merge, creating QSR powerhouse with 3,000+ stores, targeting Rs 78.3 billion revenue and Rs 2.25 billion cost synergies,...

Q1 FY27 saw positive sales growth for most brands, led by Burger King India. Recovery driven by transactions, not just prices. Investors should...