Jubilant Foodworks falls 3% after net profit slumps 74% in Q1

Shares of Jubilant Foodworks traded down 3.22 percent at Rs 461.3 around 9.41am after the company reported a 74 percent plunge in net profit for the April-to-June quarter. Jubilant Foodworks' net profit for the period is Rs 28.9 crore.

CLSA has a 'sell' rating on the stock with a target price of Rs 460. The brokerage firm said that Jubilant Foodworks margins remain under pressure as input costs stay elevated. The broker does not see any near-term catalysts for any movement in the stock.

Elara downgraded its rating to 'accumulate' for Jubilant Foodworks. The brokerage firm expects high vegetable costs in the near term to cut benefits from price stabilisation of milk and cheese. “Jubilant Foodworks is currently trading at fair 53x one-year forward P/E, much lower than the average primarily due to lower same-store sales,” said Elara Capital in a July 25 report.

Morgan Stanley has an 'equal-weight' tag on the stock with a target price of Rs 510. It said that demand outlook remains uncertain for Jubilant Foodworks. “The company is focussed on improving or maintaining margins in the coming quarters,” said the brokerage house.