Buy Jubilant Foodworks, target price Rs 4220: Geojit

Geojit has buy call on Jubilant Foodworks with a target price of Rs 4220. The current market price of Jubilant Foodworks Ltd. is Rs 3834.85. 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 49890.90 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
Q3FY22 is expected to fare much better for the company on the back of continued growth in revenue and opening of the new stores and brands. The brokerage estimates PAT to grow at 68.5% CAGR over FY21-23E and EBITDA margin to improve to 25.2% by FY23E. Hence, it upgrades rating on the stock to BUY with a revised target price of Rs. 4,220 based on 84x FY23E adj. EPS

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.