Jubilant Food at new high, BoAML sees 30% profit jump in Q1

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26 Aug, 2025 12:21

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Shares of Jubilant Foodworks jumped 3 percent, hitting record high at Rs 1935.90 per share intraday on Friday. Bank of America Merrill Lynch has increased target on Jubilant Foodworks to Rs 2100 per share while reiterating buy rating on the stock.

The brokerage expects same store sales growth (SSSG) and margins healthy growth in April-June quarter stating that Quick Service Restaurants (QSR) industry is close to a cyclical resurgence and the Domino’s franchise owner will be a key beneficiary.

BoA ML expects 6-7 percent SSSG in Q1FY16 while revenue and profit-after tax to grow at 25 percent and 30 percent (year-on-year) respectively. While gross margins are likely to be stable, EBITDA margins can improve YoY led by operating leverage, it adds.

According to the brokerage, Jubilant stands out among its peers its due to its widest reach in tier 2/3 cities, leadership in the delivery segment, especially in metro cities, proven supply chain and strong balance sheet.

However, it points out wage inflation and weak monsoon to be downside risks and about 10 percent value upside from Dunkin’ Donuts as upside risk.

The company posted net profit of Rs 31.5 crore in the January-March quarter, up 26 percent from Rs 25 crore in the corresponding quarter last fiscal. Income, during the period, also grew 25 percent to Rs 542.1 crore versus Rs 433.7 crore. During the quarter, it added 38 new Domino's restaurants and 8 new Dunkin Donut restaurants.

The stock closed at Rs 1,910.00, up Rs 23.50, or 1.25 percent on the BSE.

Posted by Nasrin Sultana