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Last Updated : Jun 07, 2017 04:51 PM IST | Source: Moneycontrol.com

Hold Jubilant Foodworks; target of Rs 960: Axis Direct

Axis Direct recommended hold rating on Jubilant Foodworks with a target price of Rs 960 in its research report dated June 06, 2017.

 
 
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Axis Direct's research report on Jubilant Foodworks


Sales declined 1%on 7.5% decline in SSSg, as delivery was impacted in Jan/Feb due to demonetization. Gross margin improved 35 bps YoY to 76.8% but negative operating leverage led to 15% decline in EBITDA. OPM declined 160bps YoY to 9.9%. Adjusted PAT declined 40% YoY.


Outlook


Management mentioned it looks forward to significant improvement in FY18. We believe this is a step in the right direction, but we await signs of an actual turnaround. Maintain HOLD with TP of Rs 960 based on forward P/Eof 40x.


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First Published on Jun 7, 2017 04:51 pm
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