Neutral on Jubilant Foodworks, target price Rs 800: Motilal Oswal Financial Services

Motilal Oswal Financial Services has a neutral call on Jubilant Foodworks with a target price of Rs 800. The current market price of Jubilant Foodworks is Rs 771.35 . Jubilant Foodworks, incorporated in 1995, is a Large Cap company with a market cap of Rs 50860.87 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 30-09-2024, the company has reported a Consolidated Total Income of Rs 1984.93 crore, up 1.78% from last quarter Total Income of Rs 1950.20 crore and up 44.29% from last year same quarter Total Income of Rs 1375.69 crore. The company has reported net profit after tax of Rs 68.79 Crore in 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 30-09-2024, the company has a total of 66 Crore shares outstanding.

Investment Rationale
Jubilant Food Consolidated revenue grew 56% YoY to Rs 21.5 billion. Standalone revenue grew ~19% YoY to Rs 16.1 billion (est. 15% YoY to Rs 15.9 billionin 3QFY25 and ~3% YoY growth in 3QFY24. Domino?s India LFL grew 12.5% (est. ~9% in 3QFY25, ~3% in 2QFY25 and (-3%) in 3QFY24). Domino?s Turkey LFL (Post-IAS-29) declined 3.2%. The Group network reached 3,260 stores, with net addition of 130 stores during the quarter. Domino?s India opened 60 net new stores, taking the total to 2,139 stores. Domino?s Turkey opened 25 net new stores, taking the total store count to 738. Motilal Oswal Financial Services has a neutral call with a target of Rs 800 on Jubilant Foodworks.

Promoter/FII Holdings
Promoters held 41.94 per cent stake in the company as of 30-Sep-2024, while FIIs owned 21.01 per cent, DIIs 30.16 per cent.