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Buy Jubilant FoodWorks; target of Rs 720: Motilal Oswal

Motilal Oswal is bullish on Jubilant FoodWorks recommended buy rating on the stock with a target price of Rs 720 in its research report dated July 28, 2022.

July 30, 2022 / 10:43 PM IST

"India’s specialty chemicals industry is a decadal growth opportunity and it is still not too late to participate in the value creation process. We prefer CRAMS/CSM players Navin Fluorine (Navin) and PI Industries (PI) as they provide long-term earnings visibility. We also like UPL due to robust growth outlook and reducing debt concerns and SRF due to rising contribution from the chemicals business," JM Financial research report.

 
 
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Motilal Oswal's research report on Jubilant FoodWorks


JUBI’s 1QFY23 result was broadly in line with our estimates on all fronts. With 58 stores added in 1Q, the management is well on track to meet its 250 store opening guidance for FY23. Delivery sales continued to deliver healthy growth, despite a higher base, with dine-in reviving to nearly 100% of pre-COVID levels. The management stated that price increases taken in 3QFY22 and subsequently in 1QFY23 are enough to combat input cost inflation.  With its remarkable track record, strong moats built around delivery, technology, value, and healthy cash flows to finance store expansion, JUBI remains our top pick in the QSR space. We maintain our Buy rating.



Outlook


We maintain our Buy rating with a TP of INR720 per share (40x Jun’24 pre-Ind AS 116 EV/EBITDA). Premium multiples are assigned for the best-of-breed operating and financial metrics in a high-growth category.

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Jubilant FoodWorks - 290722 - moti

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first published: Jul 30, 2022 10:43 pm
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