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Last Updated : May 21, 2018 06:13 PM IST | Source: Moneycontrol.com

Buy Jubilant FoodWorks; target of Rs 2846: HDFC Securities

HDFC Securities is bullish on Jubilant FoodWorks has recommended buy rating on the stock with a target price of Rs 2846 in its research report dated May 09, 2018

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HDFC Securities' research report on Jubilant FoodWorks


Jubilant  FoodWorks  (JFL)  posted revenue growth of 27.3% to Rs 7.79bn vs. expectation  of  25%.  Revenue  beat  was on account of higher SSG of 26.5% (-7.5%  in 4QFY17) vs. expectation of 22% but lower store expansion. EBITDA margin  continued  its expansion by 650bps YoY to 16.4%. EBITDA/APAT growth was stellar at 111/234% vs. expectation of 111/198%.

Outlook

Mgt’s  key  focus  areas  remain  1)  More  value  to  consumers 2) Product innovation 3) Better customer experience 4) Investment in technology and 5) Cost optimization.Such inspiring performance justifies high valuation. We value it at 46x P/E on Mar-20EPS to arrive TP of Rs 2,846. We maintain BUY.

For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.



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First Published on May 21, 2018 06:13 pm
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