Stay 'Neutral' On Jubilant FoodWorks Maintains Motilal Oswal On Expensive Valuations — Check Target Price

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Motilal Oswal Report

Jubilant FoodWorks Ltd. has been the key beneficiary of healthy traffic growth for the delivery business. Delivery is likely to outperform in the near term, which will continue to lead to better growth metrics than those of its peers in the near term.

Jubilant FoodWorks’ focus on customer acquisition and increasing order frequency has been fueling strong growth in the delivery segment. Value offering and product innovation will continue to drive order growth in FY26. We model a standalone pre-IND AS Ebitda margin of 12-14% for FY26-28E.

The H2 FY26 base is unfavorable (revenue/like-for-like growth was 19%/12.5% and 19%/12.1% in Q3 FY25 and Q4 FY25, respectively), and reported performance may not appear as attractive as it has been over the last nine months. Thus, the coming quarters' performance and commentary will be crucial for stock performance.

We remain constructive on the business franchise and higher orientation for growth. However, given the expensive valuations, we reiterate our Neutral rating on the stock with a target price of Rs 700, valuing the Indian business at 35x EV/Ebitda (pre-IND AS) and the International business at 15x EV/Ebitda on Sep’27E.

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