Axis Direct recommended hold rating on Jubilant Foodworks with a target price of Rs 960 in its research report dated June 06, 2017.
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.
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.
For all recommendations, 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.
Time to show-off your poker skills and win Rs.25 lakhs with no investment. Register Now!