Shares of Jubilant Foodworks Ltd. jumped to a record high after the operator of Domino's Pizza and Dunkin' Donuts announced its foray into the ‘biryani' business, betting on the popularity of the rice-based dish among Indian diners.
The food service company will sell biryani under the brand Ekdum!, with prices starting from Rs 99, according to an exchange filing.
The brand will offer a selection of 20 different biryanis—which, Morgan Stanley said, has been the most ordered item on online food delivery platforms such as Zomato and Swiggy since 2017—curated from different parts of India. That would include Hyderabadi Nizami Biryani, Lucknowi Nawabi Biryani, Dindigul Biryani, Kolkata Biryani, Butter Chicken Biryani, Egg Biryani, Paneer Makhni Biryani, and Tawa Chicken Biryani.
“We see strong potential in this [biryani] segment and are confident that Ekdum!, with its sharp and differentiated proposition will create a strong position for itself in the market,” the filing said.
Besides, “customers will be able to choose from an extensive range of kebabs, curries, breads, desserts and beverages. There will also be a range of raitas and chutneys that will serve to complement the food”.
The brand, according to the filing, will begin with three restaurants in Gurugram for delivery, takeaway and dine-in. The company plans to open more restaurants in the National Capital Region over the next few months. It will offer an easy–to-use app, mobile and desktop website to drive ease of ordering.
“With the launch of Ekdum!, we believe that the rollout for Hong's [Kitchen] could accelerate too,” IIFL Securities said in a note. “The opportunity size is huge and builds long-term growth drivers for the company,” the brokerage said as it maintained a ‘buy' rating on the stock. “Hong's and Ekdum! will have synergies across locations and delivery.”
Shares of Jubilant Foodworks gained as much as 4.2% to Rs 2,788 apiece in early trade on Thursday. The stock is up for the second straight day.
Of the 33 analysts tracking the company, 21 have a ‘buy' rating, eight suggest a ‘hold' and four recommend a ‘sell'. The stock is trading 10% higher than its 12-month Bloomberg consensus price target of Rs 2,437 apiece.
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