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  1. Credit Suisse keeps outperform on Jubilant FoodWorks; TP Rs 1,500. Goldman Sachs also bullish

Credit Suisse keeps outperform on Jubilant FoodWorks; TP Rs 1,500. Goldman Sachs also bullish

Leading brokerages, Goldman Sachs and Credit Suisse seem to be optimistic about the share performance of Jubilant FoodWorks after the company posted a 25% rise in the April-June quarter net profit yesterday.

By: | Published: July 18, 2017 1:45 PM
Shares of Jubilant FoodWorks hit a fresh 52-week high today, rising as much as 4.6% to Rs 1333.25 on BSE. (Image: Reuters)

Leading brokerages, Goldman Sachs and Credit Suisse seem to be optimistic about the share performance of Jubilant FoodWorks after the company posted a 25% rise in the April-June quarter net profit yesterday. Shares of Jubilant FoodWorks hit a fresh 52-week high today, rising as much as 4.6% to Rs 1333.25 on BSE.

Research and brokerage firm Credit Suisse maintained its ‘outperform’ rating on Jubilant FoodWorks with a target price of Rs 1,500 which implies % from the current market price. The brokerage firm said that starting up of strategic transformation within the organisation will help in delivering the results. Credit Suisse raised its earnings expectations for Jubilant FoodWorks by 9% for the next financial year 2018-2019 with a target multiple of 50x.

Another leading global brokerage firm, Goldman Sachs said that April-June quarter result ties well with the ‘buy’ thesis. It added that first-quarter earnings also demonstrated the benefits from the management’s focus.

Earlier Yesterday, Jubilant FoodWorks Ltd said, the increase in same store sales growth of Domino’s Pizza helped in 25% rise in the net profit which rose to Rs 23.84 crore from Rs 18.99 in the same period previous fiscal.

“We took a number of actions in the quarter towards driving innovation, delivering value and controlling costs, and we are pleased to see that our disciplined focus on driving profitable growth has begun having the desired impact,” JFL Chairman Shyam S Bhartia and Co Chairman Hari S Bhartia said in a statement, PTI reported.

At present, the company operates 1,125 Domino’s Pizza and 55 for Dunkin’ Donuts outlets. During the June quarter of the current fiscal, the company opened 13 new Domino’s Pizza outlets and shut 5. Whereas it closed 9 Dunkin’ Donuts outlets and opened only 1. Yesterday, the stocks of Jubilant FoodWorks Ltd ended at Rs 1,274.55 on BSE, up 9.31%, from its previous close on Friday last week.

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