Home >Markets >Stock Markets >Should you sell or hold Burger King India shares?

Burger King made a stellar listing on the exchange by listing at 87.5% above issue price. Shares of Burger King India made a strong debut on BSE and NSE today. Shares nearly doubled to 119 as compared to issue price of 60. Such listing was in line with analysts' expectation. "The listing was as expected as the company issue was priced at a significant discount compared to listed peers such as Jubilant FoodWorks (Domino’s Pizza) and Westlife Development (McDonald)," says Keshav Lahoti, Associate Equity Analyst, Angel Broking.

At 11:36 a.m, Burger King share was priced at 131 on BSE.

Lahoti recommends short term investors to book profits . "Short term investors may book gains. We advise long term investors to stay invested in the company as there is ample scope available for the company to increase its business in India," he says.

Even after such bumper listing, there is no issue with the valuation of the company, believes Angel Broking. In the future,the brokerage expects the company to gain market share by opening more stores compared to the competitors.

"As the store count will increase, operating leverage will kick in and the company will be able to report profit and it will lead re-rating of the multiple for the stock," says Lahoti.

The 810 crore Burger King IPO, which had got a whopping response from investors, had opened for subscription on December 2 at a price band of 59-60 per share. It was subscribed over 156 times.

The portion reserved for retail investors was subscribed 68.79 times while the portion set aside for qualified institutional investors was subscribed 86.48 times and that of high net worth investors 357.45 times.

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