Vidli Restaurant Limited (VRL) is a “Kamats” group company running chains of restaurants serving hygienic standardize food items in a quick serve format at various outlets on national highways, state highways and cities. The group is known for its brands “Vithal Kamat” and’ Kamats’. The Company started its operations in November 2013. Since then, the company started expanding its restaurant chain and concentrated on standardising its products and services through centralised purchasing and training system. As on December 31, 2015 it had 39 restaurants in western and central territories on major highways.
- The promoters have experience of running hotel chains and restaurants for many decades.
- The company has major presence in Maharashtra as of now (32 outliets). I believe there is a lot of scope to scale the operations from current level.
- I like the fact that the business is cash based business so there is no scope of receivables mismanagement.
- The value proposition (on quality and price parameters) offered by these restaurants is very good.
- Zero long term debt, 1 Cr. in Fixed Deposits, 1.12 Cr. in cash and cash equivalents, 1.47 Cr. in current investments as on September 20, 2015. Given that the market cap is just 12.90 Cr. (Current Market Price is Rs. 29.80), these numbers give a lot of comfort.
- Limited Operating History.
- Highly competitive industry.
- Ms. Vidhi Kamat who runs the company is a first generation entrepreneur.