Sapphire Foods (NSE: SAPPHIRE / BOM: 543397): Institutional Shareholders Remain Bullish as They Buy More Shares

Sapphire Foods (NSE: SAPPHIRE / BOM: 543397) is one of the largest franchisees of Yum! Brands in the subcontinent, operating more than 700 KFC, Pizza Hut and Taco Bell restaurants across India, Sri Lanka (where it’s the largest international QSR chain) and the Maldives.

Demand softness leads to weaker same-store-sales growth for the latest reported quarter. However, this week’s block purchases of shares by 14 institutional investors and funds such as Goldman Sachs and Nomura have improved sentiment for the stock.

(Note: I needed to use VPN to access their website)

OVERVIEW:

Sapphire Foods started operations in September 2015, by the acquisition of about 270 KFC and Pizza Hut Stores in India and Sri Lanka, by a group of leading Private Equity firms and is managed by a team of professionals. The Company is a leading Yum! franchisee operator in the Indian subcontinent with presence in India, Sri Lanka and Maldives. The Company is also the largest international QSR chain in Sri Lanka in terms of revenue and number of restaurants operated.
As of Mar 31, 2023, the Company owns and operates 341 KFC and 286 Pizza Hut restaurants in India, 105 Pizza Hut and 9 Taco Bell restaurants in Sri Lanka and 1 KFC and Pizza Hut each in Maldives.
The Company operates restaurants in high traffic and high visibility locations in key metropolitan areas and cities across India and develop new restaurants in new trade areas in existing and new cities as part of our brand and food category expansion.

SAPPHIRE FOODS INDIA LIMITED CORPORATE PRESENTATION – MAY’23

RECENT FINANCIALS / NEWS:

SAPPHIRE FOODS INDIA LIMITED CORPORATE PRESENTATION – MAY’23

Q4 Review | Sapphire Foods’ CEO On Q4 Earnings & FY24 Growth Outlook (YouTube) 17:32 Minutes (BQ Prime) May 2023
- Demand softness leads to weaker same-store-sales growth for #SapphireFoods in fourth quarter. Group CEO Sanjay Purohit talks about FY24.

Foreign entity Wwd Ruby exits Sapphire Foods via sale of 4.7% stake; 14 funds buy shares (The Economic Times) June 2023
- Cumulatively, 14 FIIs and DIIs bought shares of Sapphire Foods through separate block deals. Some of the prominent names include Fidelity International, Vanguard, Morgan Stanley, Societe Generale, Goldman Sachs, Aditya Birla Sun Life AMC, ICICI Prudential Life Insurance, and Kotak Asset Management Co.
Sapphire Foods gains 2.6% as institutional investors pick up stake (moneycontrol) June 2023
- WWD Ruby, one of their biggest foreign investors with a 4.77 percent shareholding in the company, sold 30 lakh shares for Rs 417 crore at an average price of 1377.10. However, large investors bought a total of 12.53 lakh equity shares in Sapphire Foods.
- Dealers said recent purchases by institutional investors Goldman Sachs and Nomura have improved sentiment for the stock.
What’s Cooking At Sapphire Foods? Sanjay Purohit Of Sapphire Foods | The Interview (YouTube) 25:04 Minutes (ET Now) November 2022
- In a special interview with Sapphire Foods’ Group CEO Sanjay Purohit discusses everything from the company’s turnaround strategy, expansion plans, and the concerns over PE exit. Despite double-digit inflation, Sanjay Purohit stated that the gross margins contracted due to inflation, resulting in 7-8% price increases. Moreover, he said restaurant margins would improve with new outlets. Furthermore, being one of Sri Lanka’s most loved brands, how has the crisis affected business?

Sapphire Foods vs Devyani International: The Valuation Debate | In The Swotlight | Inside Out (YouTube) 3:05 Minutes (moneycontrol) September 2022
- Will there be a narrowing of gap between Yum Brands franchise operators in India? Sapphire Foods vs Devyani International: The valuation debate. In The Swotlight with Nigel D’Souza. (See: Devyani International (NSE: DEVYANI / BOM: 543330): Yum! Brands’ Largest Franchisee in India Hopes for a Rebound Amid Signs Inflation is Stabilizing)

Ideas For Profit | Why Sapphire Foods Has All The Right Ingredients For A Good Long-Term Investment (YouTube) 6:19 Minutes (moneycontrol) November 2021
- Sapphire Foods had a decent listing on the bourses last week. MC Pro expects to see improvement in margins and expects SFL to turn profitable in FY23. Here’s why investors with a long-term view should add SFL shares to their portfolio.

KEY RATIOS:

P/E (Google Finance): 37.89 / Trailing P/E (Yahoo! Finance): 38.86 (no forward P/E)
Dividend Yield (Google Finance): N/A / Forward Dividend & Yield (Yahoo! Finance): N/A

1 YEAR CHART:

LONG TERM CHART:

ADDITIONAL RESOURCES:

Website
Investor Relations
SAPPHIRE FOODS INDIA LIMITED CORPORATE PRESENTATION – MAY’23
Q4FY23 Press Release
Foreign entity Wwd Ruby exits Sapphire Foods via sale of 4.7% stake; 14 funds buy shares (The Economic Times) June 2023
Sapphire Foods gains 2.6% as institutional investors pick up stake (moneycontrol) June 2023
Q4 Review | Sapphire Foods’ CEO On Q4 Earnings & FY24 Growth Outlook (YouTube) 17:32 Minutes (BQ Prime) May 2023
What’s Cooking At Sapphire Foods? Sanjay Purohit Of Sapphire Foods | The Interview (YouTube) 25:04 Minutes (ET Now) November 2022
Sapphire Foods vs Devyani International: The Valuation Debate | In The Swotlight | Inside Out (YouTube) 3:05 Minutes (moneycontrol) September 2022
Ideas For Profit | Why Sapphire Foods Has All The Right Ingredients For A Good Long-Term Investment (YouTube) 6:19 Minutes (moneycontrol) November 2021

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