Prabhudas Lilladher's research report on Jubilant FoodWorks
JUBI reported inline nos with LFL growth of 3% led by 1) 12% LFL growth in delivery channel. 2) Increasing newer consumers led by Value meal @Rs99 & refurbishment of stores 3) Increasing pace of innovation. We expect overheads to remain elevated given targgted opening of 180 Dominos, 50 Popayes and 25 Hongs kitchen in FY25 and new commissory. We believe that competitive pressures in Dominos India have peaked put and JUBI’s investments in infra will enable accelerate growth. Popayes is in initial ramp up stage and current numbers also include losses on the same. We estimate 37.6% EPS CAGR over FY24-26 on a low base.
Outlook
Consolidation of DP Eurasia will provide an upside (Rs0.8-1) to consol EPS (not factored in estimates). We assign HOLD rating on the stock (Under review earlier) with DCF based target price of Rs612.
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