Buy Jubilant Foodworks, target price Rs 780: ICICI Securities

ICICI Securities has maintained its buy call on Jubilant Foodworks with a revised target price of Rs 780 (earlier Rs 700). The current market price of Jubilant Foodworks Ltd. is Rs 663.3. Jubilant Foodworks, incorporated in 1995, is a Large Cap company with a market cap of Rs 43655.36 crore, operating in Tourism & Hospitality sector.

Jubilant Foodworks' key products/revenue segments include Beverages, Other Operating Revenue for the year ending 31-Mar-2024.



Financials
For the quarter ended 31-12-2024, the company has reported a Consolidated Total Income of Rs 2168.09 crore, up 9.23% from last quarter Total Income of Rs 1984.93 crore and up 56.85% from last year same quarter Total Income of Rs 1382.27 crore. The company has reported net profit after tax of Rs 43.54 crore in the latest quarter.

The company's top management includes Mr.Shyam S Bhartia, Ms.Deepa Misra Harris, Mr.Berjis Minoo Desai, Mr.Ashwani Windlass, Mr.Abhay Prabhakar Havaldar, Mr.Vikram Singh Mehta, Ms.Aashti Bhartia, Mr.Shamit Bhartia, Mr.Sameer Khetarpal, Mr.Hari S Bhartia, Mr.Amit Jain. Company has Deloitte Haskins & Sells LLP as its auditors. As on 31-12-2024, the company has a total of 66 crore shares outstanding.

Investment Rationale
ICICI Securities has increased its earnings estimates for Jubilant Foodworks by ~1%/5% for FY25E-26E, modelling revenue/EBITDA/PAT CAGRs of 25%/28%/44% over FY24?27E. The brokerage maintains a BUY with a DCF-based revised target price of Rs 780 (vs Rs 700). Key downside risks are raw material costs turning inflationary and higher-than-expected increase in competitive intensity.

Promoter/FII Holdings
Promoters held 41.94 per cent stake in the company as of 31-Dec-2024, while FIIs owned 21.26 per cent, DIIs 30.16 per cent.