Equirus Securities has an add call on Jubilant Foodworks Ltd. with a target price of Rs 3034.0 . The current market price of Jubilant Foodworks Ltd. is Rs 1363.3 Time period given by the brokerage is a year when Jubilant Foodworks Ltd. price can reach defined target. Jubilant Foodworks Ltd., incorporated in 1995, is a largecap company with a market cap of Rs 18332.48 crore.

Investment rationale by Equirus

During our recent channel checks of Jubilant Foodworks’ (JUBI) we received an extremely positive response. Feedback suggests that the number of footfalls increased significantly after JUBI’s launch of ‘Everyday Value Offer’ (EDV) on regular sized pizzas. Further, improvement in product quality resulted in strong order inflows during 2018 IPL match timings vs. 2017. Also, there are early signs of uptick in number of orders on account of FIFA 2018 World Cup. We believe that ‘EDV’ on regular sized pizzas is an extremely sustainable move by JUBI as it directly improves the affordability metric of a consumer and is one more step towards sustainable growth. Hence we raise our SSSg estimates resulting in an increase in our sales/EBITDA/PAT estimates by 3%/6%/8% for FY19E and 5%/8%/10% for FY20E. Reiterate ADD with a Jun’19 TP of Rs 3,034 (vs. Rs 2,738 earlier) set at a 60x TTM EPS of Rs 50.6.