Buy Jubilant Foodworks, target price Rs 561: IIFL Securities

On June 18th, IIFL Securities recommended a buy call on Jubilant Foodworks, with a target price of Rs 561. This recommendation is based on the current market price of Rs 543.2. Jubilant Foodworks is a leading food service company in India, operating through brands such as Domino's, Dunkin' Donuts, and Popeyes. The company has been reporting strong sales growth in recent quarters, driven by the increased demand for food delivery. IIFL Securities believes that this growth is likely to continue, and that the company's strong brand portfolio and market leadership position will enable it to benefit from the growing food delivery market.

About Jubilant Foodworks:

Jubilant Foodworks Limited is an Indian multinational company based in Noida, Uttar Pradesh. It is a part of Jubilant Bhartia Group and operates Domino's Pizza, Dunkin' Donuts and Popeyes outlets in India, Sri Lanka, Bangladesh and Nepal. Established in 1996, the company is the largest and fastest growing food service company in India. It has over 1,500 restaurants across its three brands, serving over 30 million customers every month.

52 Week Price Trend:

Jubilant Foodworks, the operator of the popular Domino's Pizza and Dunkin' Donuts chains in India, has witnessed a steady performance on the stock market. As of today, its CMP (Current Market Price) stands at Rs 543.2, falling within a range between its 52-week high of Rs 586.95 and its 52-week low of Rs 412.1. Despite the recent market volatility, Jubilant Foodworks has managed to maintain its position as a stable investment option, with long-term potential for growth. The company's strong brand presence, extensive network, and innovative menu offerings continue to drive its financial performance and appeal to investors.

Stratzy's MOST Analysis:

Based on Stratzy's MOST framework, JUBLFOOD has received a rating of BB-, indicating medium fundamental risks. This rating is derived from an analysis of the company's management, outlook, safety, and trend. The rating suggests that JUBLFOOD has a good management team, a positive outlook, a sound financial position, and a supportive trend. However, the company may face some challenges in the future that could impact its overall performance and financial stability.

Company's Fundamentals:

Jubilant Foodworks (NSE: JUBLFOOD) is a restaurant company with a stock PE of 145.67 and a PB ratio of 15.38. The stock PE ratio indicates that investors are willing to pay 145.67 times the company's earnings for each share, reflecting its high growth potential but also implying a premium valuation. The PB ratio measures the company's market value against its book value and suggests that the stock is trading at a significant premium to its net asset value. Despite these elevated valuations, the company's dividend yield of 0.25% offers a modest level of income for shareholders.

Fundamental and Technical information provided in this blog were last updated on 18 Jun, 2024

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