Jubilant Foodworks Ltd. share price target

4QFY16 EBITDA in line with estimate, but SSSG disappoints Sales below expectation; EBITDA and PAT in line: Jubilant Foodworks (JUBI) net sales grew by 14% YoY to INR6.2b (vs. our est. of INR6.4b) and EBITDA was up...

Jubilant Food Works Ltd (JFL), incorporated in 1995 and its subsidiary Jubilant Food Works Lanka (Pvt) Ltd operates Domino's Pizza brand with exclusive rights for India, Nepal, Bangladesh and Srilanka. JFL is India's fastest growing food service company with 1004 (as of February...

JFLs 3QFY16 results missed our estimates. Revenues grew 14.4% YoY to Rs 6.3bn (vs. est Rs 6.7bn), whereas APAT declined by 9.4% YoY to Rs 317mn (vs. est Rs 400mn).

SSSG at 2% was positive for the fifth straight quarter, but below our expectations of 7% (incorporating recent price hikes of ~6%), indicating significant volume decline Gross margins expanded due to recent price hikes and input-cost benefits...

Jubilant FoodWorks (JFL) can be a key beneficiary of the anticipated urban revival and macro recovery over FY16-18E. We believe its calibrated price hikes, core business strength and A&P; spends will help JFL outpace competition. Same store sales (SSS) growth fell from 27% FY11-13 to zero in FY15; we expect this to recover to 10% by FY18E.

Jubilant Foodworks' Q1FY16 same store sales growth (SSSG) was 4.6% positive for the third consecutive quarter even as peers have seen continued sluggishness. Network expansion was strong with management guidance of 150 Dominos and 30 Dunkin Donuts...

We recently met the management of Jubilant Foodworks, they sounded more positive about future prospects compared to our previous meeting in February 2015 (when they had toned down the aggressive consensus margins expectations). More importantly, the management expressed...

JFL being a dominant player in the domestic QSR industry is likely to benefit from the economic upgrade in urban markets. We believe that the change in business conditions and uptick in the general domestic markets especially in the urban economy would support JFL to record increase in SSS (Same Store Sales) growth.

Jubilant Foodworks (JUBI) reported strong numbers for Q4FY15 with Same Store Sales growth (SSSG) of 6.6% yoy, comprehensively beating our estimate of 3% yoy. The managementhasguidedfor150Dominosand30DunkinDonutsstoreadditionsinFY16and...