Domino’s operator Jubilant Foodworks gains 4.5% after co assures on safety of products
The company also said that it maintained stringent hygiene and quality standards for its products and these were certified practices.
Shares of Jubilant Foodworks staged a recovery from Wednesday’s decline, as the stock rose over 4.5 percent intraday on Thursday. Investors reacted positively to the company’s assurance that all its food ingredients were safe for consumption.
“The company has carried out a comprehensive inspection across vendors and stores and would like to reassure that all our food ingredients are safe for consumption and we have not received any other complaint of this nature,” the company said in a statement.
Further, it added that the company maintained stringent hygiene and quality standards for its products and all of these products and quality standards were certified.
The stock was aided by a report from Deutsche Bank which said that the incident may not have any material impact on the company’s operations, while estimates too remained unchanged. It forecast EBITDA growth of 35 percent over FY17-19. In fact, the stock remains a top pick in consumer discretionary space.
On Wednesday, reports emerged that bugs were found in Domino’s Pizza’s oregano seasoning sachets, which led to a fall in its share to as low as 6 percent. Analysts were quick to point out that lack of response from the company could be very damaging for the company going forward.At 11:16 hrs Jubilant Foodworks was quoting at Rs 1,368.95, up Rs 47.15, or 3.57 percent, on the BSE. It touched an intraday high of Rs 1,382.00 and an intraday low of Rs 1,347.05.