1
Please refer to important disclosures at the end of this report
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1
Jubilant FoodWorks Limited (JUBI) is a food service company. Jubilant
FoodWorks’ Q1FY18 posted strong numbers on all fronts, with revenue at
Rs6.8bn, up 11.5% yoy; EBITDA at Rs796mn, up 37.8% yoy; PAT at Rs239mn
grew by 25.5% yoy. Same-stores Sales Growth(SSG) at +6.5% yoy was aided by
healthy traction in Every Day Value offers. The company is confident of achieving
a healthy SSG going forward on the back of consolidation of stores and new
product offerings. The company is confident of break-even in Dunkin Donuts in
FY19. Closure of unprofitable stores, SSG uptick, GST and break-even in Dunkin
Donuts are the key levers for margin expansion. In FY18, Dominos is expected to
add 40-50 stores, which is much lower than earlier annual run rate of 130-150
stores. However, 100 stores will be refurnished/relocated in FY18 to enhance
customer experience. JUBI is virtually debt free and has reported average return
on equity (ROE) 19.99% in last 3 years. Currently company has a RoE 8.46% and
is trading at valuation EPS of 37.31x of TTM earnings. Hence BUY
BUY
CMP `1275
1.2
Reuters Code
JUBI.NS
JUBI:IN
10
BSE Sensex
32,074
Nifty
9,916
Face Value (`)
Restaurants
Market Cap (` cr)
8,398
52 Week High / Low
1328.75/761
Avg. Daily Volume
184,635
Vaibhav Agrawal
022 3935 7800 Ext: 6808
[email protected]gelbroking.com
Jubilant FoodWorks Ltd
Others | Restaurants
July 18, 2017
2
Jubilant FoodWorks | Restaurants
June 5, 2017
2
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement Jubilant Foodworks
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment period): Reduce (-5% to -15%) Sell (< -15)