Shares of Jubilant FoodWorks gained 2.8 percent intraday on December 9 after global brokerage house Citi remained bullish on the stock with a target price of Rs 1,655, implying a potential upside of 5.3 percent from current levels.
The counter has rallied 34 percent in last three months. It was quoting at Rs 1,612.10, up Rs 40.75, or 2.59 percent on the BSE at 12:06 pm.
"The strategic tweaks in the last two years and strong execution are positives. The impact of slow macro seems less of a concern and valuations are reasonable at current levels," the brokerage reasoned.
The company had reported a 2.8 percent year-on-year decline in September quarter consolidated profit due to one-time loss of Rs 12.5 crore, but consolidated revenue grew 12.2 percent to Rs 998 crore.
At the operating level, earnings were quite strong, with overall numbers meeting analyst expectations. Consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 59.9 percent YoY to Rs 234.1 crore and margin expanded 700 bps to 23.5 percent in Q2 FY20.
Same-store sales growth stood at 4.9 percent as against 20.5 percent in the same period last year.
Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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