Buy Jubilant Foodworks; target of Rs 799: Sharekhan

Buy

Sharekhan's research report on Jubilant Foodworks

Jubilant Foodworks’s (JFL’s) Q3FY25 standalone operating performance was mixed, with revenues growing by 19% y-o-y, while EBIDTA margins fell by 145 bps y-o-y to 19.4%. Consolidated revenues and adjusted PAT grew by 56% and 2% y-o-y, respectively. Domino’s India’s like-for-like (LFL) growth improved to 12.5% (~25% delivery LFL growth). Delivery channel to outperform and drive growth in the near term aided by multiple initiatives taken by JFL. Margins were hit by input cost inflation, launch of margin-dilutive products and higher discounting. Management expects 100 bps rise in gross margin in 2-3 quarters driven by lower discount along with cost effective initiatives.

Outlook

Stock has corrected 13% from recent highs and trades at 31x/26x/22x its FY25E/26E/27E consolidated EV/EBIDTA, respectively. We maintain a Buy with a revised PT of Rs. 799.

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.

Jubilant Foodworks - 19022025 - khan