Moneycontrol
Last Updated : Jan 22, 2018 02:56 PM IST | Source: Moneycontrol.com

Jubilant Foodworks hits record high, up 6% as analysts see up to 34% rally post Q3 nos

While maintaining Outperform call on the stock with increased target price at Rs 2,581 (from Rs 2,005 per share), Macquarie said Q3 numbers were excellent with massive operating leverage.

Jubilant Foodworks shares hit fresh record high of Rs 2,211.85, rising 5.75 percent in morning Monday as analysts raised target price and earnings per shares estimates after strong Q3 earnings performance.

The operator of Domino’s Pizza chain in India posted a stellar increase in its December quarter net profit at Rs 66 crore, against Rs 20 crore posted during the same period last year. Its revenue grew by 21 percent year-on-year to Rs 795.20 crore in Q3.

At the operating level, the earnings before interest, taxes, depreciation and amortisation (EBITDA) rose to Rs 137 crore versus Rs 64.04 crore year on year. The operating margin came in at 17.2 percent against Rs 9.7 percent year on year.

The same store sales growth (SSSG), a key metric to gauge its business profitability, grew to 17.8 percent against a negative 3.3 percent growth year-on-year.

Brokerage: Macquarie | Rating - Outperform | Target - Rs 2,581 | Upside - 23.4%

While maintaining Outperform call on the stock with increased target price at Rs 2,581 (from Rs 2,005 per share), Macquarie said Q3 numbers were excellent with massive operating leverage.

It further said even on 2-year CAGR basis, same-store-sales growth was healthy.

The research house believes better affordability & product quality will continue to drive SSSG growth.

"Jubilant remains our top pick in the consumer space and we increase FY17-20 EPS by 12-18 percent," Macquarie said.

Brokerage: CLSA | Rating - Buy | Target - Rs 2,800 | Upside - 33.87%

CLSA has upgraded EPS by 21-28 percent, while maintaining Buy call on the stock with increased target price at Rs 2,800 (from Rs 2,300 per share)

Multi-quarter high same-store-sales growth & margins-EPS upgrade cycle continued, it said, adding same-store-sales growth at 17.8 percent was a huge positive.

Slow expansion for both brands was on expected lines, it said, adding the management sounded fairly positive in its outlook.

CLSA expects earnings to grow at a CAGR of 38 percent over FY18-20.

Brokerage: Credit Suisse | Rating - Outperform | Target - Rs 2,750 | Upside - 31.5%

Credit Suisse has maintained its outperform rating on the stock with increased target price at Rs 2,750 (from Rs 2,140) as numbers were exceptionally strong on all fronts and expect it to sustain.

Jubilant has been seeing a fundamental turnaround in Q3, with strong SSSG driven by orders even adjusted for GST.

EBITDA margins spiked but cost and productivity initiatives have more headroom, Credit Suisse feels.

At 09:28 hours IST, the stock price was quoting at Rs 2,170.95, up Rs 79.40, or 3.80 percent on the BSE.
First Published on Jan 22, 2018 10:09 am
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