ICICI Securities maintains ‘buy’ on Jubilant FoodWorks, target price Rs 1,902

ICICI Securities has maintained its ‘Buy’ rating on Jubilant FoodWorks in the long term with a target price of Rs 1,902. Shares of Jubilant closed at Rs 1,854.20, down 2.52% while BSE Sensex closed 162.23 points down (-0.39%) at 40,979.62.

Company Financials

For the quarter ended 31-12-2019, the company has reported a Consolidated sales of Rs 1071.36 Crore, up 7.35 % from last quarter Sales of Rs 998.05 Crore and up 14.30 % from last year same quarter Sales of Rs 937.31 Crore Company has reported net profit after tax of Rs 101.80 Crore in latest quarter.


The company’s top management includes Mr.Arun Seth, Ms.Aashti Bhartia, Mr.Vishal Marwaha, Mr.Shyam S Bhartia, Mr.Shamit Bhartia, Mr.Pratik Pota, Mr.Phiroz Vandrevala, Mr.Hari S Bhartia, Mr.Berjis Minoo Desai, Ms.Ramni Nirula. Company has Deloitte Haskins & Sells LLP as its auditors As on 31-12-2019, the company has a total of 131,969,040 shares outstanding.


Investment Rationale


The brokerage said food safety concerns in China may potentially increase volatility for restaurant businesses in the region in near-term. However, the brokerage believes that the long-term growth story remains intact.