Review

COFFEE DAY ENTERPRISES

CMP: Rs.262.40
Rec. Price Rs.304.50
Ticker : 539436 
FV: Rs. 10 
52-Week H/L: Rs.356.20/237.10




We had recommended Coffee Day Ltd. in volume no. 35, issue no. 21, (dated Mar 18, 2019), when the scrip was trading at Rs 304.5. Our recommendation was backed by factors like the per capita consumption of coffee in India remains low at less than 100 grams versus 4 kg in the United States. During Q3FY19, the standalone revenues stood at Rs 11.72 crore, down 45.88 per cent, as against Rs 21.66 crore YoY. The company reported a quarterly net loss of Rs 19.23 crore for Q3FY19, as against Rs 13.16 crore in Q3FY18. Coffee Day promoter VG Siddhartha and some other parties have signed agreements to sell their stakes in Mindtree to Larsen and Toubro for Rs 3269 crore. The proceeds will be used to pare down Coffee Day Group’s debt. Considering these factors, we recommend a HOLD on the stock.