Add Jubilant Foodworks, target price Rs 4200: ICICI Securities

ICICI Securities has add call on Jubilant Foodworks with a target price of Rs 4200. The current market price of Jubilant Foodworks is Rs 3763. Time period given by analyst is one year when Jubilant Foodworks Ltd. price can reach defined target.

Jubilant Foodworks Ltd., incorporated in the year 1995, is a Large Cap company (having a market cap of Rs 50010.99 Crore) operating in Tourism & Hospitality sector.

Jubilant Foodworks Ltd. key Products/Revenue Segments include Pizza, Others, Beverages, Desserts, Dips, Other Operating Revenue and Others (Traded) for the year ending 31-Mar-2021.



Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 1125.64 Crore, up 24.88 % from last quarter Total Income of Rs 901.35 Crore and up 32.79 % from last year same quarter Total Income of Rs 847.68 Crore. Company reported net profit after tax of Rs 120.05 Crore in latest quarter.

Investment Rationale
The brokerage cuts FY22-23 earnings estimates by ~8-10%, modelling revenue / EBITDA / PAT CAGR of 29 / 37 / 70 (%) over FY21-23E. It maintains ADD with DCF-based revised target price of Rs4,200 (was Rs3,500 earlier) as it rolls forward. Key downside risk is raw material costs turning inflationary.


Promoter/FII Holdings
Promoters held 41.94 per cent stake in the company as of 30-Sep-2021, while FIIs owned 41.41 per cent, DIIs 10.87 per cent.