Taking a bite of Burger King's IPO could yield reasonable returns

Reasonable valuation, steady margin profile are positives

If the current financial year is excluded, growth has not been a problem for the Indian quick service restaurant (QSR) business. At 19 per cent annual growth over FY15-20, QSRs far outstrip most other formats in the organised food service market. This trend is likely to hold with annual growth pegged at 23 per cent over the FY20-25 period, according to management consultancy Technopak. 

Burger King India, which is raising over Rs 800 crore in its initial public offering, is eyeing this growth as it seeks to expand its presence in the country by two and half times over the