Jubilant FoodWorks a good bet: Dilip Bhat

In a chat with ET Now, Dilip Bhat, Joint MD, Prabhudas Lilladher, shares his views on stocks delivering good results.

What do you make of some of these offbeat stories, niche players, which are delivering good results, the valuations maybe extremely premium but somehow the market still continues to like them even when there is so much of uncertainty around?

Jubilant FoodWorks, no doubt it is expensive but the franchise model, which they have really rolled out, my analyst himself talks about some 45% growth in the PAT for the next two years accompanied by something like 45-50% of ROEs. Now typically some of this business, though they look expensive, people are just betting that they are a little safer. They are a little better place to hide because there is a better visibility in terms of growth, less cash consuming companies, throwing good amount of free cash, so all those things are the market’s favourite at the moment, so it is just that and in this particular scenario when you really have to commit the funds, especially the mutual funds and the FIIs, they probably will gravitate more towards some of these stocks, so that possibly could be an explanation as to why these stocks, though they are going up and they are expensive, yet they continue to go up.