Dipen Sheth, Head-Institutional Research of HDFC Securities told CNBC-TV18, "We don't have Jubilant Foodworks under coverage but if you ask for the headline view I think the same store sales growth has fallen down to something like 7 percent, if I am not mistaken, compare this to about 30 percent two years ago. If you adjust this 7-8 percent for consumer price index (CPI) then I think they have got negative real growth in same store sales growth. So that doesn’t inspire, so it is obviously reflective of urban pain. And may be even after correcting 20-25 percent in the last two-three months the stock is still trading for 30 times consensus one year forward earnings. So I guess that is a little bit of aspirations running too far ahead of reality with Jubilant."
He further added, "On the other hand with Asian Paints, volume growth did taper off I think since FY11 to FY12, FY12 to FY13 volume growth has continuously declined but even FY13 showed a very creditable 7 percent volume growth. And over FY14 and FY15 we would be betting, we have the stock under coverage and we are betting on a revival of volume growth."
"There is no danger of market share slipping away, there is no danger of inherent or underlying demand subsiding in any way. We have actually upped multiples and we see this 5-10 percent correction in the stock as an opportunity for long term investors to get in."
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