In Friday’s trading session, shares of one of the leading FMCG stocks, Specialized in offering an extensive menu ranging from pizzas, burgers, pasta, and sandwiches to beverages and desserts, jumped by up to 0.5 percent after global brokerage company Jefferies initiates Buy Target of Rs.1,000 with 32 percent Upside Potential.
Price action
With a market capitalization of Rs. 48,779 crores on Friday, the shares of Jubilant Foodworks Limited rose by 0.5 percent making a high of Rs. 760 per share compared to its previous closing price of Rs. 756.15 per share.
What Happened
Jubilant FoodWorks Limited,operator of fast-food chains like Domino’s Pizza and Dunkin’ Donuts, also known for its expertise in the quick-service restaurant (QSR) industry, saw its shares hit a fresh 52-week high on Thursday after global brokerage Jefferies raised its target price to Rs 1,000, up from the previous target of Rs 800.
Jefferies anticipates an improvement in the company’s outlook, particularly in same-store sales, which are expected to grow in the mid to high single-digit range. Additionally, it believes that Jubilant Food’s margins have reached their lowest point in early 2024 and are poised for further improvement.
About the company
Jubilant FoodWorks Limited is a leading Indian company in the quick-service restaurant (QSR) industry, primarily known for its master franchise operations of Domino’s Pizza and Dunkin’ Donuts in India. Founded in 1995, the company has established itself as a major player in the food and beverage sector with a strong network of over 3,130 stores across India.
Jubilant FoodWorks specializes in delivering a wide range of pizzas, burgers, beverages, and other fast-food items, catering to diverse customer preferences. They are committed to innovation, offering localized flavors to cater to Indian taste preferences, while also ensuring international standards of quality and customer service.
Shareholding Pattern
The ownership structure of Jubilant FoodWorks Limited is as follows: the promoters hold 41.94 percent, Foreign Institutional Investors (FIIs) own 21.00 percent, Domestic Institutional Investors (DIIs) control 30.39 percent and the public holds 6.67 percent.
H1FY25 Highlights
In H1 FY25, Jubilant FoodWorks reported strong results, with system sales reaching Rs. 45,084 million and revenue growing 43.8 percent YoY to Rs. 38,878 million. EBITDA rose 41.3 percent YoY to Rs. 7,816 million, with a margin of 20.1 percent. The company also expanded its store network to 3,130, adding 139 net stores.
Financials
The company’s revenue rose by 44 percent from Rs 1,375.69 crore to Rs 1,984.93 crore in Q2FY24-25. Meanwhile, Net profit fell from Rs 97.2 crores to Rs 64.05 crore during the same period.
Key Financial ratios
Jubilant FoodWorks Limited has an Return on Equity (RoE) of 11.15 percent and a Return on Capital Employed (RoCE) of 11.51 percent. Furthermore, the company’s debt-to-equity ratio is 1.94.
Written by Sridhar J
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