Jubilant food stock prices fell 6 percent in early trade on February 3, the day after the company reported the results of the December quarter (Q3FY22).
Food Jubilant FoodWorks, who run the Domino’s Pizza and Dunkin ‘Donuts in India, reported a 7.5% increase in the December quarterly consolidation net profit to RS 133.20 Crore from Rs 123.92 Crore a year ago. The Board also approved sharing shares 5: 1.
Revenue from operations grew 13.2% to RS 1,210.77 Crore from Rs 1,069.28 Crore in the last year period.
Total expenditure rose 13.07% to RS 1,040.24 Crore. The EBITDA margin increased 24 basis points to 26.6% from 26.4% last year.
This is what the broker must say about the stock and the company posts the December Quarter:
Citi.
The research company has maintained a buying call and cut target prices to Rs 4,350 from Rs 4,750 because Covid restrictions affect revenue, while margins remain healthy.
The risk related covid on the side, continue to believe in long-term stories.
Morgan Stanley.
The intermediary house keeps the overweight call on the shares with the target at Rs 5,000 because the Q3 income passes a little estimate and also skips consensus.
Management repeats the multi-state, multi-brand, technology-based QSR business plan and remains bullish on growth potential.
CLSA.
CLSA has lowered the stock to sell and cut the target price to Rs 3,190 from Rs 3.920 as a competitive intensity to tighten and slow progress on new initiatives.
The pressure of our margin leads to cut the estimated income of FY22-24 by 12-14%, CLSA said.
Credit Suisse.
Research companies have maintained neutral calls and cutting targets to RS 3,500 from Rs 3,800.
Moderate growth expectations as a 2-year trend in charge, while Suisse’s credit reduces FY22-24 income by 7-9%.
The company may have simple growth, because the reopening leads to a stronger recovery in meals.
Jefferies.
Broking House has held a call in stock and cuts the target to RS 3,750 from Rs 4,100 and also cuts EPS estimates by 7-8%.
The company decided to stop reporting of SSS growth, key parameters in the QSR business.
Management sees LFL (like-for-like) better metrics to track performance, while termination of SSS comes as a negative.
Sharekhan.
The company is a banking on consistent domino revenue growth, brand improvement that arises through higher investment, increasing attendance in the international market, and investing in potentially high businesses to produce better stock returns in the long run.
We maintain our purchase recommendations on stocks with unchanged price targets of Rs 4,707.
Oswal Maleral.
We cut our EPS FY22 / FY23 / FY24 concoction of 8% / 14% / 15% because of A) the impact of further covid restrictions in 4QFY22 and B) some possible pressure on the SSSG / LFL for the next few quarters due to the ongoing separation of stores.
We stayed bullish happily behind the best breed metrics and set a right victory. We maintain our purchase rankings at RS 4,200 target prices / Share (33x FY24E EV / EBITDA).
At 09:18 HRS Jubilant FoodWorks quoted at Rs 3,157.80, down Rs 143.45, or 4.35 percent in BSE.
