Jubilant FoodWorks rallies 19% as management confirms price hike

MUMBAI: Shares of Jubilant Food Works surged as much as 18.7 per cent in trade on Tuesday, after the management in an interview to ET Now confirmed of price hike this month.

The stock closed very close to its 52-week high of Rs 1391. Jubilant finally ended 190 points higher or 16.23 per cent at Rs 1,360.70. The stock hit a low of Rs 1,171 and a high of Rs 1,389.95 in trade today.

“We do two price increases every year, one in the first half and one in the second half. For the second half, the price increase will be within this month. Typically, the price increase is in the range of 3 per cent every year. But this time, our price increase will be slightly higher than 3 per cent, it will be around 5 per cent,” said Ravi Gupta, CFO, Jubilant Foodworks.

“Although the inflationary pressure was there in Q2, it was higher than what we have expected. It will be even higher in Q3 and going forward, we believe that the trend is going to continue,” he added.

The company reported 2.78 per cent jump in standalone net profit at Rs 33.24 crore for the second quarter ended September 30. The company, which is also a franchise of Dunkin' Donuts chain in India, said there will not be price increase for Dunkin' Donuts.

“Probably Jubilant Foodworks has moved up quite a bit. I would be comfortable buying into with stoploss of Rs 1,240 for target of Rs 1,350,” said Sandeep Wagle, Founder & MD, APTART Technical Advisory Services to ET Now.