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Buy Jubilant Foodworks; target of Rs 675: Sharekhan

Sharekhan is bullish on Jubilant Foodworks has recommended buy rating on the stock with a target price of Rs 675 in its research report dated July 28, 2022.

July 31, 2022 / 02:43 PM IST
The research firm ICICI Securities believes earnings of apparel brands and retail companies under their coverage may surprise positively from Q3FY22E as the likely demand recovery may result in better than expected margin performance. Some of the costs savings achieved during pandemic may sustain and coupled with high operating leverage may lead to higher than pre-covid margins from Q3FY22E.  Stocks like Trent, V-Mart and Aditya Birla Fashion and Retail are the preferred picks backed by their strong and consistent track record of execution.

The research firm ICICI Securities believes earnings of apparel brands and retail companies under their coverage may surprise positively from Q3FY22E as the likely demand recovery may result in better than expected margin performance. Some of the costs savings achieved during pandemic may sustain and coupled with high operating leverage may lead to higher than pre-covid margins from Q3FY22E.  Stocks like Trent, V-Mart and Aditya Birla Fashion and Retail are the preferred picks backed by their strong and consistent track record of execution.

 
 
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Sharekhan's research report on Jubilant Foodworks


Jubilant Foodworks Limited (JFL) reported another quarter of strong performance in Q1FY2023 on low base. Revenue grew 41% y-o-y (like-for-like growth of 28.3%) and EBITDA margin improved 59 bps y-o-y to 24.6%; PAT grew by 81.1% y-o-y to Rs. 120.8 crore. JFL added 58 Domino’s stores and two stores each of Popeyes and Hong’s Kitchen; and it aims to add 250 Domino’s stores and 20-30 Popeyes stores in FY2023. JFL launched its first-ever loyalty programme – Domino’s Cheesy Rewards – and introduced paratha pizza range focusing on menu localisation to drive growth through increased frequency and new customer addition.


Outlook


The stock has corrected by 18% from its recent high and currently trades at 59.7x/41.4x its FY2023E/FY2024E earnings. We maintain Buy with an unchanged PT of Rs. 675.


For all recommendations report, click here

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Jubilant FoodWorks - 290722 - khan

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first published: Jul 31, 2022 02:39 pm
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