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Jubilant Foodworks Gains For 6th Straight Day; Hits New All-Time High

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On Monday, shares of Jubilant Foodworks rose over 6 percent to hit an all-time high of Rs 2,105.15 on NSE. The stock of the QSR company, the master franchisee of Domino's Pizza and Dunkin' Donuts branded restaurants in India, climbed after ICICI Securities upgraded the stock to "Add" from "Hold", stating that it is best positioned to gain from a faster-than-expected recovery in the economy.

Jubilant Foodworks Gains For 6th Straight Day; Hits New All-Time High
 

The brokerage firm feels that the digital infrastructure and delivery relationships are a competitive advantage for the company. Delivery charge and variabilisation of costs can help mitigate the near-term pressure on profitability it said. ICICI Securities estimates on expected revenue were at 9 percent, EBITDA is 15 percent and profit after tax CAGR at 33 percent for the financial years 2020 to 2022.

It also raised its price target on the stock to Rs 2,100 from the earlier Rs 1,800.

About two weeks ago, Jubilant Foodworks had announced its entry into the ready-to-cook pastes and sauces market capitalizing on the growing home-cooking trend in India. Its range of products under the brand "ChefBoss" are being sold through Amazon, Flipkart, and Milkbasket (NCR).

This diversification of its business is expected to help the company compete with other packaged food makers.

Read more about: jubilant foodworks
Story first published: Monday, August 24, 2020, 11:57 [IST]
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