Negative on Jubiliant Foodworks: Satish Batadpur

ET Now caught up with Satish Betadpur, CFA, Global Research Director, Independent International Investment Research PLC, to get his views on the outlook of Jubiliant Foodworks.

You track Jubilant Food closely. The company has said that it will probably do an EPS on the outside of Rs 6, may grow it to Rs 12 in the next year. It is the only restaurant to be listed in India. Do you think it is demanding slightly more than what it should?

Actually, I was not even positive during listing. I am continuing to be very negative on it on the whole valuation front but you have to remember there are two things that are going for it. One, it is a scarcity premium because there are no listed fears and if you want to play in the eye growth, the food industry, this is the only one that is available. And two, FIIs focus on this stock with two numbers, one is population of 1.2 billion and another number which is 2%, that the 2% penetration of pizzas in India. So, it is easy for FIIs to understand this stock and there is a premium being built around this stock at this point. But for guys who are more value players, this is not a stock to be involved, but it is a high momentum kind of story. So, the stock may run up but we are definitely not involved in this stock.