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Shares of Jubilant Foodworks rallied as much as 8.15% to Rs 650.95 apiece on the BSE
Jubilant Share Price Today
Shares of Jubilant Foodworks, which operates popular fast food chains such as Domino’s Pizza and Dunkin’ among others in India, rallied as much as 8.15% to Rs 650.95 apiece on the BSE, a day after the company reported its September quarter (Q2 FY25) numbers.
On Monday, the FMCG giant posted a profit after tax (PAT) of Rs 66.53 crore, marking a 31.5% year-on-year (YoY) decline. Despite the drop in profit, the company’s revenue grew by 43% YoY.
Even though a dip in profit the Domino’s Pizza operator’s stock climbed as in a joint statement, Jubilant FoodWorks Chairman Shyam S Bhartia, and Co-Chairman Hari S Bhartia said the company sustained broad-based momentum in Q2 and grew its network to 3,130 stores by adding 139 stores across brands and markets.
The management also said its financial results for the current periods are not comparable with that of previous periods as its subsidiary Jubilant Foodworks Netherlands B.V. had acquired controlling stake in DP Eurasia N.V. (DPEU) during the period ended March 31, 2024 and pursuant to which, the group has accounted for its investment in DPEU.
The total expenses in the second quarter were at Rs 1,895.67 crore as compared to Rs 1,290.17 crore in the same quarter of the previous fiscal.
In the international market, revenue from operations was at Rs 460.5 crore although revenue from Domino’s Bangladesh came in at Rs 12.6 crore, lower by 5.3 per cent on account of temporary store closures amidst a challenging operating environment. All stores are now operational, it added.
What Do Analysts Say?
Post the company’s Q2 update, domestic brokerage firm Nuvama hiked its target price on the stock to Rs 631 from an earlier Rs 568 while reiterating a hold rating.
“Jubilant’s positive LFL growth in Q2FY25 has set it apart in a challenging market. The company’s focus on delivery and innovative strategies has fuelled this success,” said Nuvama in its report.
Jubilant’s strategic moves to stimulate consumption, from revamped menus to free deliveries, are paying off, revitalising both delivery and dine-in businesses.
“While the current trajectory necessitates slight adjustments to our FY25E/26E revenue (-1.1/-0.3%) and PAT (-5.7%/- 0.6%) projections, we remain bullish on the company’s turnaround potential,” the global brokerage firm said.
HDFC Securities has maintained an ‘Add’ rating on the stock with a target price of Rs 650 per share.
“Management’s ability to scale up newer format such as Popeye, Dunkin Donuts and Hong Kitchen can unlock another leg of value creation,” the brokerage said.
Motilal Oswal iterated a ‘Neutral’ rating on the stock with a target price of Rs 625 per share.
“The growth recovery still looks more gradual, and operating margin would see slower recovery,” brokerage report read.
In the past one year, Jubilant FoodWorks shares have gained 18.4 per cent against Sensex’s rise of 22 per cent.
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