Hiked target price implies an upside of 81 percent. The firm believes operational turnaround and GST drove sharp improvement in EBITDA margins.
Global research firm UBS has maintained its sell call on Jubilant Foodworks, but raised the target price to Rs 1,450 from Rs 800. This implies an upside of over 81 percent.
The firm believes operational turnaround and GST drove sharp improvement in EBITDA margins.
Going forward, it believes that double digit SSSG growth over medium to long term to be difficult given intense competition. Meanwhile, the EBITDA margin reverting to earlier level seems difficult.
It also highlighted that Jubilant's shares are pricing in high long-term growth.At 12:14 hrs Jubilant Foodworks was quoting at Rs 1,934.55, up Rs 7.20, or 0.37 percent, on the BSE. It touched an intraday high of Rs 1,941.00 and an intraday low of Rs 1,926.95.