Rs. 1.2/Share Dividend Declared Amounting To Rs. 792 Mn; Buy/Sell The FMCG Stock?

The largest food and beverages firm in India, Jubilant FoodWorks Limited is the exclusive owner of the master franchise rights from Domino's Pizza Inc. and manages the brand in Bangladesh, Nepal, India, and Sri Lanka. It has a robust and wide network of 1,928 Domino's locations spread over 407 cities in India. Additionally, the company holds the exclusive rights to build and run Dunkin' stores in India as well as Popeyes restaurants in Bangladesh, Nepal, and Bhutan. Established in 1995, Jubilant FoodWorks Limited (JFL Group/Group) is one of the top food service providers in emerging markets. 2,991 stores spread over six markets-India, Turkey, Bangladesh, Sri Lanka, Azerbaijan, and Georgia-make up the group network. With franchise rights for three international brands-Domino's, Popeye's, and Dunkin'-as well as two own brands-Hong's Kitchen, an Indo-Chinese QSR brand in India, and COFFY, a CAFÉ brand in Turkey-the group has a robust portfolio of brands.

Jubilant FoodWorks Dividend

"The Board of Directors of the Company has recommended a dividend of Rs. 1.2 per equity share of face value of Rs. 2 each for the financial year ended 31st March 2024 (amounting to Rs. 792 million), subject to approval of shareholders at the Annual General Meeting," said the company in a regulatory filing.

Jubilant FoodWorks Financials

According to a regulatory filing from Jubilant Foodworks Ltd (JFL), the company declared a consolidated net profit of Rs 208.24 crore for the fourth quarter that ended on March 20, 2024, as opposed to a net profit of Rs 28.54 crore in the January-March quarter of the previous fiscal year. During the quarter, its revenue from operations climbed by 23.85% to Rs 1,572.79 crore as against Rs 1,269.84 crore in Q4FY23. The largest food service firm in India, JFL, had a 28.23% increase in its overall expenses to Rs 1,545.47 crore in the March quarter of FY24. In the March quarter, JFL's total income increased by 23.61% to Rs 1,594.12 crore. For the quarter, earnings before interest, tax, depreciation, and amortisation (EBITDA) jumped by 24.7 per cent to Rs 310.5 crore. EBITDA margins are at 19.7 per cent, up 10 basis points YoY.

Mr. Shyam S. Bhartia, Chairman and Mr. Hari S. Bhartia, Co-Chairman, Jubilant FoodWorks Limited commented, "FY'24 was a year of significant shift as the acquisition of DP Eurasia elevates the profitable growth trajectory of the JFL Group. This acquisition further solidifies JFL's longstanding partnership with Domino's, the world's largest pizza company, to profitably grow high potential emerging markets. The Group also made noteworthy progress during the year in supporting and nurturing new growth vectors, solidifying its position as one of the leading emerging markets' foodservice company."

Mr. Sameer Khetarpal, CEO and MD, Jubilant FoodWorks Limited commented, "The March quarter performance was remarkable as Domino's India's like-for-like trajectory turned around in Q4. This was achieved through several pre-planned strategic interventions, including strengthened regional infrastructure, enhanced on-ground execution, a comprehensive revamp of the brand, and further refining the value proposition through targeted delivery fee waivers during a period of weak demand. Moreover, the year witnessed substantial progress across every strategic priority, with increased business reinvestments that weigh on near-term margins but will be a pivotal catalyst to drive our future growth across all brands and markets."

Jubilant FoodWorks Share Price Target

"Jubilant FoodWorks Limited, a key player in the food service industry, has gained significant attention after its recent strategic Analysts/Institutional Investor Meet. Holding exclusive franchise rights for major brands like Domino's Pizza and Dunkin' Donuts, the company is well-positioned for growth. Investors are advised to buy shares above Rs.490, for a targeted price between Rs.530 and Rs.650. The relatively high PE ratio of 78.93 against the sector PE of 38.29 indicates a premium market valuation of this mid-cap stock. Regardless, individuals may consider holding this stock for 10 to 100 days to chase the targeted price, while following a strict stop-loss of Rs.450 to safeguard against potential losses," said V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.