Others | Miscellaneous
Nov 16, 2018
Jubilant Foodworks Ltd
BUY
CMP
`1,189
Jubilant Foodworks Limited (JUBI) is a food service company, which is known by
Stock Info
its brand - Dominos Pizza. During 1HFY19, its sales went up by 24% to `1,736cr
Sector
Restaurants
driven by sustained momentum in Every Day Value (EDV), All New Domino’s
Market Cap (` cr)
15,694
product upgrade & online sales grew the SSSG 20.5% YoY. EBITDA margin
Beta
1.0
expanded by 431 bps to 17.7% on account of steady focus on cost saving
52 Week High / Low
1578/977
measures. The company is confident of achieving a healthy SSG going forward
Avg. Daily Volume
1,67,832
on the back of consolidation of stores and new product offerings. Jubilant is also
Face Value (`)
10
confident of break-even in Dunkin Donuts in FY19. Closure of unprofitable
BSE Sensex
35,457
stores, SSG uptick, GST and break-even in Dunkin Donuts are the key levers for
Nifty
10,682
margin expansion. In FY19, Dominos is expected to add 75 stores, of which 24
Reuters Code
JUBI.BO
was added in 2QFY19. With innovative offerings, strong play on affordability
Bloomberg Code
JUBI IN
and focus on deepening penetration, JFL is poised to tap the overall discretionary
demand recovery. On the financial health front, It has a virtually debt free
Shareholding Pattern (%)
balance sheet and has reported average return on equity (ROE) 15.7% in last 3
years. Currently company has an RoE of 21.9% and is trading at valuation of 53x
Promoters
44.9
of TTM earnings, which is one of the lowest in a year. Hence BUY
MF / Banks / Indian Fls
7.1
FII / NRIs / OCBs
39.4
Indian Public / Others
8.2
Abs. (%)
3m 1yr
3yr
Sensex
(5.9)
7.1
37.6
JUBIFOOD
(21.2)
34.0
73.5
Jaikishan Parmar
022 - 3935 7600 Ext: 6810
Please refer to important disclosures at the end of this report
1
Jubilant Foodworks Ltd | Miscellaneous
Research Team Tel: 022 - 39357600
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Disclosure of Interest Statement
Jubilant Foodworks Ltd
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)
2
