Shares of Jubilant FoodWorks declined over 3 percent in early trade on BSE on August 31 even as media reports suggested that the company has started a smaller sized kiosk model for the coffee and baked goods chain in the country.
The company, which operates Dunkin’ Donuts chain in India, is evaluating opportunities to scale up through the new smaller sized kiosk model.
Global brokerage firm CLSA has maintained an outperform rating on the stock with a target price of Rs 2,095 per share.
As per CNBC-TV18, CLSA said the company's five-pillar growth strategy will aid share gains as the industry consolidates.
New launches and the focus on reducing operational leverage offer strong growth prospects, CLSA said.
CLSA is of the view that the company is better positioned to improve its unit economics while medium-term benefits are now adequately discounted.
Jubilant FoodWorks will report its June quarter results on September 2.
Shares of the company traded 1.18 percent down at Rs 2,144.60 on BSE at 10:25 hours.
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