Last Updated : Mar 14, 2019 12:50 PM IST | Source:

Jubilant Food climbs 3% on block deal; HDFC Sec sees 32% upside

The company & its subsidiary operates Domino's Pizza brand with the exclusive rights for India, Nepal, Bangladesh and Sri Lanka.

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Jubilant Foodworks shares rallied 3 percent intraday on March 14 after a block deal of 40 lakh equity shares in early trade today.

Jubilant Foodworks was quoting at Rs 1,336.00, up Rs 8.70, or 0.66 percent on the BSE, at 1119 hours IST.

A CNBC-TV18 report said about 40 lakh shares (representing a 3 percent of total paid-up equity) exchanged hands at a price of Rs 1,312.40 in early trade.

The company and its subsidiary operate Domino's Pizza brand with the exclusive rights for India, Nepal, Bangladesh and Sri Lanka.

HDFC Securities believes Jubilant Foodworks has enough levers to sustain healthy performance in FY20/21E  given (1)  Return  to  store expansion (focus on splitting stores in metros and expansion in smaller towns), (2) Filling gaps in the   Menu,  (3)  Focus  on  new  customer  acquisition  and  driving frequency,  (4) Benefits from sporting events (Cricket World Cup 2019 and   reschedule   in  IPL  will  support  1HCY19  performance),  (5) Turnaround  of  Dunkin’  and  Launch  of  Hong’s  Kitchen.

"We  model 18/11/10 percent same-store-sales growth during FY19E/FY20E/FY21E. We value JFL at 46x on Mar-21 EPS, arriving at a target price  of Rs 1,750. Reiterate buy," the research house said.

Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.
First Published on Mar 14, 2019 11:42 am
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