Jubilant FoodWorks rose 3.78% to Rs 1,537.95 at 10:41 IST on BSE on reports a foreign brokerage upgraded its rating on the stock to 'overweight' from 'equalweight' and hiked its target price to Rs 1,780 from Rs 900.
Meanwhile, the S&P BSE Sensex was up 178.89 points, or 0.57% to 31,770.92.On the BSE, 66,000 shares were traded in the counter so far, compared with average daily volumes of 89,367 shares in the past one quarter. The stock had hit a high of Rs 1,547.10 so far during the day, which is also 52-week high for the counter. The stock had hit a low of Rs 1,506 so far during the day. The stock hit a 52-week low of Rs 761 on 26 December 2016.
The stock had outperformed the market over the past one month till 5 October 2017, rising 6.46% compared with 0.22% decline in the Sensex. The scrip had also outperformed the market in past one quarter, rising 35.43% as against Sensex's 0.74% rise. The scrip had also outperformed the market in past one year, rising 45.93% as against Sensex's 12.40% rise.
The large-cap company has equity capital of Rs 65.98 crore. Face value per share is Rs 10.
According to reports, the brokerage said that Jubilant FoodWorks channel checks show still-favorable demand trends with same store sales growth (SSSG) to offset cost inflation. Combination of demand growth, moderate cost inflation, stringent cost control, and favorable base could drive earnings. Same store sales growth is expected to be 8%, 10% and 12% for FY 2018, FY 2019 and FY 2020 respectively. The brokerage expects margin to expand by 610 basis points over FY 2017-2020. The brokerage hiked earnings per share (EPS) estimates by 19%, 28% and 28% for FY 2018, FY 2019 and FY 2020 respectively. The brokerage issued bull case target price of Rs 2,500 on strong same store sales growth over FY 2018-2020 and revenue CAGR of 30%.
Jubilant FoodWorks' net profit rose 25.5% to Rs 23.84 crore on 11.5% growth in net sales to Rs 678.82 crore in Q1 June 2017 over Q1 June 2016.
Jubilant FoodWorks is part of Jubilant Bhartia group and India's largest food service company with a network of Domino's Pizza restaurants pan India. The company & its subsidiary have the exclusive rights to develop and operate Domino's Pizza brand in India, Sri Lanka, Bangladesh and Nepal. The company also has exclusive rights for developing and operating Dunkin' Donuts restaurants for India.
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