Jubilant Foodworks Ltd. share price target

JFL's Q1FY19 results beat our estimate with strong 25.9% Same Store Sales (SSSG) performance. After lackluster EBITDA outlook in 19 consecutive quarters (17.4% in Q3FY13 to 9.9% in Q4FY17), for the third consecutive quarter, the company exhibited striking operating performance with 490 bps margin expansion to 16.6%. Continuing momentum in core pizza due to product upgrade and Everyday Value Offer'(EDV) is driving growth. Further, better IPL season was a key driver of the growth. GST has been a boon for the company to increase profitability. Going ahead, we...

Jubilant Foodworks Ltd is in the FMCG sector, having a market capitalization of Rs. 16,928 croreswhich holds themaster franchiseforDomino's...

Revenue decreased by 1.93% to Rs. 779.82 Cr in Q4FY18 when compared to the previous quarter. Jubilant Foodworks Ltd - results Comment

We value it at 46x P/E on Mar-20EPS to arrive TP of Rs 2,846. We maintain BUY. Jubilant FoodWorks (JFL) posted revenue growth of 27.3% to Rs 7.79bn vs. expectation of 25%. Revenue beat was on account of higher SSG of 26.5% (-7.5% in 4QFY17) vs. expectation of 22% but lower store expansion. EBITDA margin continued its expansion by 650bps YoY to 16.4%. EBITDA/APAT growth was stellar at 111/234% vs. expectation of 111/198%.

JUBI's sales grew 27.3% YoY to INR7.8b (est. of INR7.5b), with SSS growth of 26.5% YoY (est. of +20%). With net seven stores added in 4QFY18, the total store count stood at 1,134 as of end-FY18. Gross margin contracted 260bp YoY to 74.3%, while EBITDA margin expanded 650bp YoY to 16.4%. EBITDA, thus, grew 111.1% YoY to INR1.3b (in-line), while adj. PAT increased 355.8% YoY to INR681m (est. of INR617m). FY18 performance: SSS growth stood at 13.9% YoY. Standalone net sales, EBITDA and adj. PAT increased 17.1%, 81% YoY and 173.5%, respectively.

Domino's extends Everyday value offer (EDVO) to regular sized pizza's starting at Rs 99 each. This is an extension of the EDVO launched on the medium sized pizza last year. The EDVO overlaps existing Pizza Mania offering at lower price point but extends the discount to more offerings in the regular size category. The offer also targets small groups and increases affordability which should help sustain the SSG improvement. Management initiatives continue to increase SSG and margins visibility. Acceleration in store expansion, improvement in mobile ordering app and dining experience could be additional growth drivers in future....

Above estimates: Net sales, EBITDA and adj. PAT were well above estimates, driven by 17.8% SSSg at Domino's (highest in five years). Gross margin declined 40 bps YoY (product enhancement only partially offset by lower discounts)

Firing on All Cylinders; Wait for Better Entry Opportunity Jubilant FoodWorks (JFL) has reported a phenomenal set of numbers in 3QFY18 surpassing ours as well as streets estimates on all operating parameters. Its net sales grew by 20.7% YoY to Rs8bn (vs. our estimate of Rs7.6bn), while EBITDA surged by 114% to Rs1.4bn (vs. our estimate of Rs1bn). Further, the Company's net profit zoomed by 231% YoY to Rs660mn, ahead of our estimate of Rs423mn. Key monitorable parameter of Same Store Sales (SSS) grew by 17.8% YoY, marking the highest growth in past 21 quarters, albeit on a lower base. Sharp outperformance on the back of higher-than-estimated SSS growth resulted in higher...

Our valuation multiple remains unchanged at 46x Dec-19E EPS, while our TP rises to Rs 2,662 (Rs 2,124 earlier) in line with the earnings upgrade. Maintain BUY. Jubilant FoodWorks (JFL) reported a blowout quarter with revenue growth of 20.7% (Rs 7.95bn), significantly ahead of our estimate (16%). EBITDA/APAT grew 114/230% YoY, vs est 70/139%. EBITDA margin hit a 4-year high (17.2%). Strong SSG growth of 17.8% (-3.3% in 3QFY17 and 5.5% in 2QFY18) was driven mostly by volume and 6-7% price hike (Nov-17) post the GST rate revision. Co has seen a strong consumer response on new offerings.

Jubilant Foodworks Ltd Q3FY18 results comment Revenue rose by 9.43% to Rs. 795.17 Cr in Q3FY18 when compared to the previous quarter