The company & its subsidiary operates Domino's Pizza brand with the exclusive rights for India, Nepal, Bangladesh and Sri Lanka.
Jubilant Foodworks shares rallied 3 percent intraday on March 14 after a block deal of 40 lakh equity shares in early trade today.
Jubilant Foodworks was quoting at Rs 1,336.00, up Rs 8.70, or 0.66 percent on the BSE, at 1119 hours IST.
A CNBC-TV18 report said about 40 lakh shares (representing a 3 percent of total paid-up equity) exchanged hands at a price of Rs 1,312.40 in early trade.
The company and its subsidiary operate Domino's Pizza brand with the exclusive rights for India, Nepal, Bangladesh and Sri Lanka.
HDFC Securities believes Jubilant Foodworks has enough levers to sustain healthy performance in FY20/21E given (1) Return to store expansion (focus on splitting stores in metros and expansion in smaller towns), (2) Filling gaps in the Menu, (3) Focus on new customer acquisition and driving frequency, (4) Benefits from sporting events (Cricket World Cup 2019 and reschedule in IPL will support 1HCY19 performance), (5) Turnaround of Dunkin’ and Launch of Hong’s Kitchen.
"We model 18/11/10 percent same-store-sales growth during FY19E/FY20E/FY21E. We value JFL at 46x on Mar-21 EPS, arriving at a target price of Rs 1,750. Reiterate buy," the research house said.
Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.
