Coffee Day Enterprises gains on reports foreign brokerage maintains buy

Coffee Day Enterprises rose 1.41% to Rs 241 at 14:38 IST on BSE on reports that a foreign brokerage has maintained its buy rating on the stock with target price of Rs 280 per share.

Meanwhile, the S&P BSE Sensex was up 124.16 points or 0.44% at 28,129.53.

On BSE, so far 4,969 shares were traded in the counter as against average daily volume of 19,864 shares in the past one quarter. The stock hit a high of Rs 241.60 and a low of Rs 236 so far during the day. The stock had hit a record high of Rs 318 on 2 November 2015. The stock had hit a record low of Rs 219.40 on 29 February 2016. The stock had underperformed the market over the past one month till 17 August 2016, sliding 1.74% compared with 0.61% rise in the Sensex. The scrip had also underperformed the market in past one quarter, declining 10.42% as against Sensex's 8.66% rise.

The mid-cap company has equity capital of Rs 206 crore. Face value per share is Rs 10.

The brokerage reportedly said that the Coffee Day Enterprises (CDEL) stock factors execution & other risks and the company's profitability should gradually improve.

On consolidated basis, CDEL reported a net profit of Rs 11.40 crore in Q1 June 2016 compared with net loss of Rs 78.31 crore in Q1 June 2015. Net sales rose 20.6% to Rs 720.38 crore in Q1 June 2016 over Q1 June 2015.

CDEL is the parent company of the Coffee Day Group which houses the coffee selling restaurants CafCoffee Day.

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