Jubilant FoodWorks Q2 Results Review - Demand Improvement Expected; Upgrade To 'Accumulate': Dolat Capital

"BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.Jubilant FoodWorks Ltd.’s Q2 FY24 operational performance was in line with our estimate. A -1.3% like for like growth, high employee cost and low operating efficiency resulted 340 basis points Ebitda margin contraction.  During the quarter, Jubilant FoodWorks added 50 new Domino’s stores in the domestic market. Going ahead, the company plans to add ~200-225 new store under Domino’s while ~30-35 stores under Popeye’s.Further, favorable base, festive season and cricket world cup is expected to help the company to post strong same-store sales growth improvement. Maintained our FY24/25E earnings per share estimates at Rs 5.9/8.2 as Q2 performance was in line and introduced FY26E EPS at Rs 10.1. We remain positive on quick service restaurant growth in the long run and believe that moderate inflation would help regain lost pace. Increase target price at Rs 607 (60 times FY26E; price/earnings to growth – 2.6 times). Multiple revision is in line with better growth visibility. Upgrade to 'Accumulate'..Click on the attachment to read the full report:.Jubilant FoodWorks Q2 Results: Profit Drops 39.45%, Margin Contracts.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Jubilant FoodWorks Q2 Results Review - Demand Improvement Expected; Upgrade To 'Accumulate': Dolat Capital

We remain positive on QSR growth in the long run and believe that moderate inflation would help regain lost pace.

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Jubilant FoodWorks Q2 Results Review - Demand Improvement Expected; Upgrade To 'Accumulate': Dolat Capital

We remain positive on QSR growth in the long run and believe that moderate inflation would help regain lost pace.

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