Prabhudas Lilladher's research report on Jubilant FoodWorks
Jubilant Foodworks Analyst Meet outlined its BOLD strategy (Breakthrough Technology, Operational Excellence, Lead with Purpose, and Delicious Food) for both India and DP Eurasian business. JFL plans to focus on technology (AI) and innovation-led growth, leveraging technology to deliver more personalized experiences to consumers while driving cost efficiency. Dominos India is aiming for 5 new platforms and expand the depth and width of portfolio with launch of Big Big 6-in-1 Pizza, Cheesy Rice, Korean Bun and a value range menu. It plans to expand Popeyes and improve its ADS and profitability, although no specifics have been shared. JUBI’s 2028 plans include 3000 dominos outlets in India and 1000 in Dp Eurasia and will target for making coffy as 3 rd largest coffee chain in Turkey. It will look at 200bps margin expansion and improving cash flows by tech led efficiencies.
Outlook
JUBI seems best placed to benefit from expected uptick in demand given multiple brands and tech led innovations. We cut our standalone estimates by 4.4/16.8/21.5% due to higher capex plans and lower than expected margin guidance. We estimate JUBI’s EPS to increase to Rs6.8 in FY27 (Rs3.1 in FY25 and Rs6.7 in FY22) on a depleted base. We value JUBI at Rs692 (SOTP with India business at 35xFY27 EV/ EBIDTA and DP Eurasia at 25xPAT on FY27). Retain Hold with target price of Rs692 (Rs672 earlier).
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