Shares of Jubilant FoodWorks (JFL) hit a brand new excessive of Rs 3,842, up 4 per cent on the BSE in intra-day commerce on Tuesday on expectation of a robust progress outlook. Prior to now three weeks, the inventory of this fast service restaurant (QSR) firm has rallied 25 per cent after reported a superb set of numbers for the quarter ended June 2021 (Q1FY22). IN the method, the counter has managed to surpass its earlier excessive of Rs 3,829.10 hit on August 3, 2021.
JFL is India’s largest foodservice firm. Its Domino’s Pizza franchise extends throughout a community of 1,380 eating places in 298 cities. The Firm has the unique rights to develop and function Domino’s Pizza model in India, Sri Lanka, Bangladesh and Nepal. It additionally enjoys unique rights to develop and function Dunkin’ Donuts eating places in India. JFL has ventured into the Chinese language delicacies section with its first owned restaurant model ‘Hong’s Kitchen’.
For Q1FY21, JFL reported a consolidated web revenue of Rs 69.06 crore within the first quarter ended June 30, aided by increased revenues regardless of the second wave of Covid-19 disrupting operations. It had posted a consolidated web lack of Rs 74.47 crore in the identical quarter final fiscal. Ebitda (earnings earlier than curiosity, taxes, depreciation, and amortization) margins remained unchanged at 24.1 per cent in Q1FY22 towards 24.3 per cent in Q4FY21.
Its income from operations within the first quarter stood at Rs 893.19 crore as in comparison with Rs 388.41 crore within the corresponding interval final 12 months when operations had been additionally disrupted by the outbreak of the pandemic. With vaccinations effectively underway, the administration believes that the worst is behind us and we’re assured of delivering sturdy, sustained progress within the durations forward.
Analysts at Prabhudas Lilladher stay constructive on JFL given elevated retailer opening steering of 150-170 Domino’s shops with a medium-term potential of 3000 shops, decrease competitors given Covid led shakeout, elevated funding in digital infrastructure to emerge as a meals tech firm and skill to capitalize on rising comfort gross sales given sturdy digital/supply community.
The brokerage agency believes JFL’s aggression in the direction of retailer opening and enhance funding in the direction of digital infrastructure will permit JFL to emerge stronger from the pandemic.
“Retailer addition for Domino’s was low (20 new shops) in Q1 as a consequence of lockdowns. However JFL’s enlargement plan is aggressive, with a goal of 150-175 new shops in FY22. Administration is upbeat about digital and tech initiatives aimed toward turning into a meals tech powerhouse. JFL affords a robust progress outlook with stable enlargement plans and elevated investments in digital and tech initiatives, which might additional strengthen management and supply effectivity positive aspects forward,” analysts at Emkay International Monetary Companies stated in a latest observe.