MOSL: JUBILANT FOODWORKS (Upgrade to Buy)-Good results, improving earnings outlook drive
JUBILANT FOODWORKS: Good results, improving earnings outlook drive upgrade
(JUBI IN, Mkt Cap USD2.7b, CMP INR1430, TP INR1720, 20% Upside, Upgrade to Buy)
- Jubilant Foodworks' (JUBI) sales increased 12.1% YoY to INR9.9b (in-line), with SSS growth of 4.9% YoY (our estimate: +6%). Like-for-Like growth (i.e., sales growth of stores that were not split since 1st Apr'18) stood at 6.5% YoY. EBITDA was up by 59.3% YoY to INR2.3b (our estimate: INR2.3b) and adj. PAT rose 13.9% YoY to INR884m (our estimate: INR767m). Reported PAT was impacted by one-off provision of INR125m.
- Excluding the Ind-AS 116 impact, underlying EBITDA was up 9.7% to INR1.6b with the margin at 16.4%.
- Gross margin expanded by 70bp YoY to 75.3% and EBITDA margin by 700bp YoY to 23.8%. Underlying EBITDA margin contracted 30bp YoY to 16.4%.
Jubilant FoodWorks Limited is a food service company. The Company operates through Food and Beverages segment. The Company and its subsidiary have rights to develop and operate Domino's Pizza brand in India, Sri Lanka, Bangladesh and Nepal. It operates in India and Sri Lanka. It has a right for developing and operating Dunkin' Donuts restaurants for India. Domino's Pizza India operates approximately 1040 restaurants in India located in states and union territories, covering approximately 240 cities across the country. Dunkin' Donuts sells a range of donuts and over a dozen coffee beverages, as well as an array of bagels, breakfast sandwiches and other baked goods. The Company has approximately 70 Dunkin' Donuts restaurants in India. It offers Chocolate Donut, Break-up Party Eclair, Chocofix Donuts, Big Joy Burger, Naughty Lucy Burger, The Tough Guy Burger, Too Much Burgers range, Wicked Wraps, the iconic Dunkin' Original Drip Coffee, Dunkaccinos and Spiked Iced Tea, among others.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.