Phillip Capital downgrades Jubilant FoodWorks to neutral, raises target price to Rs 1,415

Phillip Capital has downgraded its rating on Jubilant FoodWorks to neutral in the long term from buy and revised its target price to Rs 1,415 from Rs 1,380. Shares of Jubilant FoodWorks ended down 0.95% at Rs 1,322.45 on Thursday while the BSE sensex closed 198.54 points down at 38,106.87.

Company Financials

For the quarter ended 30-06-2019, the company has reported consolidated sales of Rs 949.11 crore, up 8.74 % from last quarter sales of Rs 872.82 Crore and up 9.95 % from last year same quarter sales of Rs 863.23 crore. The company has reported net profit after tax of Rs 71.48 crore in the latest quarter.


Investment Rationale

The market had started anticipating better same-storesales numbers for Q2 for Domino’s Pizza, after positive commentary for July-August by one of the largest listed quick service restaurant players in one of its conferences, said Phillip Capital.