Reduce Jubilant Foodworks, target price Rs 525: HDFC Securities

HDFC Securities has reduce call on Jubilant Foodworks with a target price of Rs 525.The current market price of Jubilant Foodworks is Rs 489.4.

Jubilant Foodworks, incorporated in the year 1995, is a Large Cap company (having a market cap of Rs 32236.74 Crore) operating in Tourism & Hospitality sector.

Jubilant Foodworks key Products/Revenue Segments include Pizza, Others, Beverages, Desserts, Dips, Other Operating Revenue and Others (Traded) for the year ending 31-Mar-2022.


Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 1311.92 Crore, up 3.65 % from last quarter Total Income of Rs 1265.75 Crore and up 16.55 % from last year same quarter Total Income of Rs 1125.64 Crore. Company has reported net profit after tax of Rs 115.03 Crore in latest quarter.

The company’s top management includes Mr.Shyam S Bhartia, Mr.Berjis Minoo Desai, Mr.Ashwani Windlass, Mr.Abhay Prabhakar Havaldar, Mr.Vikram Singh Mehta, Ms.Aashti Bhartia, Mr.Shamit Bhartia, Mr.Pratik R Pota, Mr.Hari S Bhartia, Ms.Deepa Misra Harris. Company has Deloitte Haskins & Sells LLP as its auditors. As on 30-09-2022, the company has a total of 66 Crore shares outstanding.

Investment Rationale
With weak demand for QSR, we expect deceleration in SSSG for Jubilant. We model 12% revenue growth with LFL SSSG at 4.5% (three-year CAGR at 4%).

Promoter/FII Holdings
Promoters held 41.94 per cent stake in the company as of 30-Sep-2022, while FIIs owned 29.8 per cent, DIIs 19.62 per cent.