Jubilant FoodWorks Limited’s stock opened its trading session today at Rs 432 and currently trades at Rs 431.45. The scrip is up around 0.2 percent in comparison to the previous closing price of Rs 430.75.
Jubilant FoodWorks Limited, a part of the Jubilant Bhartia Group, holds the master franchise rights for two international brands named ‘Domino’s Pizza’ and ‘Dunkin Donuts’ addressing two different food market segments.
Currently, the company operates more than 1,200 outlets and is a market leader in the ‘pizza’ segment. It has more than 30,000 brand ambassadors who are committed to deliver value to its customers.
Looking at the financials of the company, the revenues and net profits have reported numbers in opposing directions with revenues, on one end, increasing from Rs 1,301 crores in Q2 to Rs 1,332 crores in Q3. Net profits, on the other side, reduced from Rs 115 crores in Q2 to Rs 80 crores in Q3.
The profitability ratios of the company have also improved with ROE moving from 18.18 percent in FY20-21 to 24.92 percent in FY21-22 and ROCE increasing from 36.79 percent in FY20-21 to 42.35 percent in FY21-22.
In the past year, the company raised debt and reported a debt to equity ratio of 0.06 during FY21-22.
As per the quarter ending December 2022, promoters of the company hold a constant 41.94 percent stake, and FIIs, on the other side, continuously reduced their holding and reported a 26.77 stake in the company.
ICICI Securities gave a ‘Buy’ recommendation on the stock with a target price of Rs 630 indicating an upside of around 46 percent as compared to the current price levels.
The rationale behind providing such a target price is the promising nature of new stores opened by the company. Additionally, decent earnings estimates have been modeled by the Brokerage.
Written by Amit Madnani
