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.
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.
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