IIFL Securities Stock Idea: Buy Jubilant Foodworks with Target Rs 695

IIFL Securities recommends a buy call on Jubilant Foodworks, a leading food service company in India. With a target price of Rs 695, analysts believe the stock has upside potential from its current market price of Rs 669.9. The company's strong brand portfolio, including Domino's Pizza and Dunkin' Donuts, is expected to drive growth in the coming quarters. Additionally, the expansion of its delivery network and focus on innovation are seen as positive catalysts for the stock's performance.

About Jubilant Foodworks:

Jubilant Foodworks is an Indian multinational food service and retail company headquartered in Noida, Uttar Pradesh. It is the franchisee of Domino's Pizza in India, Bangladesh, Sri Lanka, and Nepal, and also operates its own restaurant brands, including Ekdum! and ChefBoss. The company has over 1,500 outlets across its various brands and employs over 25,000 people. Jubilant Foodworks is listed on the National Stock Exchange of India (NSE) and has a market capitalization of over ₹10,000 crore.

52 Week Price Trend:

Jubilant Foodworks, the operator of Domino's Pizza and Dunkin' Donuts in India, has seen its stock price rise to Rs 669.9, marking a significant increase from its 52-week low of Rs 412.1. The growth in the company's share price can be attributed to the easing of COVID-19 restrictions, which has led to increased footfall at its restaurants. Additionally, Jubilant Foodworks has expanded its delivery network and introduced new menu items, contributing to its improved financial performance. However, the stock price remains below its 52-week high of Rs 586.95, indicating potential for further growth in the future.

Stratzy's MOST Analysis:

Jubilant FoodWorks (JUBLFOOD) has a BB- rating with Stratzy's MOST framework. This indicates that the stock has medium fundamental risks. The rating is based on the company's management, outlook, safety and trend. JUBLFOOD has a strong management team with a proven track record. The company's outlook is positive, with growth potential in the foodservice industry. JUBLFOOD's safety is good, with a strong balance sheet and cash flow statement. The company's trend is positive, with rising sales and profits. Overall, JUBLFOOD is a well-managed company with a positive outlook and good safety and trend.

Company's Fundamentals:

Jubilant Foodworks (NSE: JUBLFOOD) is a leading player in the Indian food services industry. As of today, JUBLFOOD stock is trading at a price-to-earnings (PE) ratio of 145.67. This means that investors are willing to pay 145.67 times the company's annual earnings for each share of stock. JUBLFOOD's price-to-book (PB) ratio is 15.38, which indicates that investors are willing to pay 15.38 times the company's book value for each share of stock. Lastly, JUBLFOOD's dividend yield is 0.25%, which means that investors can expect to receive a dividend of 0.25% of the stock's price each year.

Fundamental and Technical information provided in this blog were last updated on 10 Sep, 2024

Disclaimer: The information and recommendations presented in this section, including any attached reports, are sourced from third-party providers through diverse channels. The views and opinions expressed within these materials belong solely to their respective creators. These views and opinions do not necessarily reflect the position of Stratzy Fintech Pvt Ltd. Stratzy explicitly disclaims any guarantees, express or implied, regarding the accuracy and reliability of the provided content. We strongly advise consulting with a licensed financial advisor before making any investment decisions based on this information. Remember, seeking independent financial advice is crucial.