Jubilant Foodworks Ltd. share price target

Jubilant Foodworks (JUBI) has reported better than expected result for 3QFY21. JUBI reached 100% pre-covid levels during 3QFY21 driven strong growth momentum in delivery and takeaway while dine-in still operating at c. 42% pre-covid. Favourable competitive environment, benign raw material and delivery charges continued to support gross margin expansion. JUBI added higher no. of Dominos stores during 3QFY21. Also, added 5 stores of Hongs and EkDum. Positively, both these franchises are tracking well. Based on revised business outlook; we have revised our EPS estimates upwards by 7%, 9% and 7% in FY21E, FY22E, and FY23E. We upgrade our valuation...

with medium term potential of 3000 Dominos 2) lower competition as several smaller players have gone out of business 3) Investment in App being rewarded by record downloads and improved mix order value and 4) huge growth opportunity in segments like biryani (EkDum) and chinese foods (Hongs Kitchen) given lack of large organised players. We believe JUBI's wide reach and affordable portfolio will enable dine in to grow swiftly once capacity restrictions are lifted. We believe strong cash position and negative working capital provides JUBI an opportunity to create...

Jubilant Foodworks (JFL) has expanded its platter by foraying into the Biryani segment under the brand name -Ekdum! by opening three restaurants in Gurgaon. This is inline with its strategy expand its portfolio to include products that Indian consumers prefer. The expected rise in QSR sector, shift to trusted brandspost COVID-19 and higher ordering through online platforms will be the key growth drivers for such ventures in the near term. Core business recovered m-o-m (in October,business bounced back to 96%). With stores operating at optimal levels and the on-going festive/cricket season, online...

Outlook improves with the ongoing growth momentum across delivery and take-away channels and expected recovery from Dine-in. Therefore, we upgrade our rating on the stock to ACCUMULATE with a revised price target of Rs. 2,830 based on 63x Dec 2022E adj. EPS....

returned to normalcy (96.2% in Oct'20) and is likely to emerge stronger from and 49.8% YoY) 2) lower competition as several smaller players have gone out of business 3) closure of dine in focused 105 stores which will be replaced...

Jubilant Foodworks (JUBI) has reported above expected result for Q2FY21. JUBI witnessed strong recovery in revenue (compared to last year) from 70% in Jul'20 to 92% in Sep'20 and 96% in Oct'20. This was driven by faster recovery in delivery and takeaway channel. To further improve convenience in takeaway channel; JUBI has launched drive and pick facility during 2QFY21 (customer's won't have to step-out from their cars). Gross margin improved significantly led by low discounting intensity, deflationary raw material environment, and introduction of delivery fees. Cost efficiencies (lower employee and other expense) drove EBITDA margin expansion....

Jubilant FoodWorks' (JUBI) closure of 90 stores at net level on sequential basis impacted sales performance v/s estimates in 2QFY21. However, store opening returning to end-FY20 levels is encouraging (1,335 stores by endFY21). Management believes sales would be positive by 4QFY21. Operating margins were significantly ahead of expectations, led by various factors like (a) introduction of delivery charges from 1QFY21, (b) deflation in raw material costs, (c) closure of least profitable stores, (d) costs savings on employee costs, both at the store level and delivery level, (e) lower energy costs, and (f) cut on wastages. Of these, most are sustainable....

recovery to 69.8/85/92% of last year sales. During October, the company recovered 96.2% of last year sales driven by delivery growth of 16.3% and takeaway growth of 64.3% YoY. In addition to benign RM, GM also benefited from lesser discounts and introduction of delivery charges in Q1FY21. JFL closed down 100 unprofitable Domino stores (>2/3rd contribution...

returned to normalcy (96.2% in Oct'20) and is likely to emerge stronger from and 49.8% YoY) 2) lower competition as several smaller players have gone out of business 3) closure of dine in focused 105 stores which will be replaced...

With measures being taken by the Government, to boost the economy, we anticipate an increase in demand in the near term which would support operations to mitigate short term challenges. We thereby recommend Hold rating on the stock with a revised target price of Rs. 2,445 based on 64x FY22E adj. EPS. Challenging Q1; Encouraging recovery expected The revenues for JFL fell drastically by 59.5% YoY to Rs. 380cr in Q1FY21, owing to acute challenges of demand and supply on account of nation-wide lockdown and...