24Seven: Why the retail chain needs to be on every rival's shopping list?

In today's rapidly expanding Indian retail landscape, 24Seven is emerging as a standout

player. With over 145 stores, 24Seven has become a familiar name in the convenience store sector. However, what truly makes 24Seven a business to watch is its massive untapped potential.

As part of Godfrey Phillips, 24Seven benefits from strong backing but is currently valued like a traditional cigarette business. A spin-off and shift to a franchise-owned model would allow the retail chain to shed this outdated valuation and align more with the growth rates of India's quick-service restaurant (QSR) sector, which commands much higher P/E ratios.

By transitioning from an asset-heavy, company-owned model to a franchise-owned approach, 24Seven can rapidly scale its operations while unlocking significant financial value.

Moreover, 24Seven's focus on maximizing the use of existing assets, launching new revenue streams and implementing loyalty programs positions it well to capture a larger share of the booming Indian consumer market. With a target to grow from 145 stores to 1,000, 24Seven's growth strategy could result in a market cap of $10 billion within the next decade.

Recently, even Japan's Seven-Eleven showed interest in a potential buyout offer, underscoring the strategic value that major global players see in 24Seven's expansion strategy. For retail competitors, 24Seven's formula for aggressive growth makes it a business worth acquiring.

Disclaimer: In the article "24Seven: Why the retail chain needs to be on every rival's shopping list?" above - Any views, comments or communication (above or in the past) should not be construed to be investment advice by Alternative Growth (hereafter referred to as “AltG”) in any form whatsoever. AltG does not make an offer to sell or solicit to buy any securities.