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
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%.
OutlookMgt’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.
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