Jubilant Foodworks Limited (JFL) posted disappointing numbers in Q3FY23 with a flat like-for-like (LFL) sales, while gross margins and EBIDTA margins declining by 213 bps and 457 bps, y-o-y respectively resulting in a 35% y-o-y decline in PAT to Rs. 89 crore. Company is focusing on improving LFL growth through higher dine-in sales. It has launched Everyday value range at Rs. 49 and is improving store ambience to attract more customers. Targets LFL sales growth of 6-8% in the coming years. New store addition and change in focus to dine-in business is unlikely to have any material impact on margins. Expects EBIDTA margins to recover to 25% as raw material inflation recedes.
OutlookStock has corrected by 45% from its high and is currently trading at 67.7x/46.1x/34.7x its FY2023E/FY2024E/FY2025E earnings. In view of long-term growth prospects, we maintain a Buy recommendation on the stock with revised PT of Rs. 600.
For all recommendations report, click hereDisclaimer: 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.
Jubilant Foodworks - 01 -01-2023 - khanDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
