Jubilant FoodWorks Q3 review: Should you buy, sell or hold Domino’s Pizza operator’s stock?

The company had reported profit of Rs 66 crore in the same quarter last fiscal.

Revenue of the company rose 16.8 percent at Rs 929.1 crore against Rs 795.2 crore.

Operating profit or EBITDA up 24.7 percent at Rs 170.6 crore, while margin was at 18.4 percent.

The same-store-sales growth stood at 14.6 percent for the quarter ended December 2018.

Here is a gist of what brokerages feel about the results.

Brokerage: Credit Suisse | Rating: Neutral | Target: Raised to Rs 1,350 from Rs 1,275

The global research firm observed that the same store sales growth was healthy, but it was moderating as GST impact is fading away. It expects more moderation in same-store-sales growth. It also saw stores expansion being accelerated after two years. Further, a change in beverage partner leads to gross margin gain, it added. A key watchout could be the risk of aggression from food aggregators.

Brokerage: Morgan Stanley | Rating: Overweight | Target: Rs 1,525

The firm believes margin expansion of 110 bps is ahead of its +20 bps estimate. The overall operating expenses remained flattish. SSSG was higher than expectation of 14 percent.

Brokerage: Macquarie | Rating: Outperform | Target: Raised to Rs 1,780 from Rs 1,600

Macquarie said that Q3 results were a strong rebuttal to street concerns about demand environment. Further, incremental margin boost on account of the new beverage deal. It believes that the recent correction provides for a good entry point. On the earnings front, it is building in 31% EBITDA CAGR for FY18-20. The company remains as one of the top picks.