Fundamental Report Jubilant Foodworks Ltd

Outlook:

Jubilant Foodwork had been the best QSR companies with the best business model among QSRs in India, with an emphasis on and success in delivery and majority of their delivery is from their own channel. This has given it a huge advantage over its peers, which have higher Real Estate and overhead cost. It has had the best Balance Sheet, with a RoCE of over 20% for many years, Management new strategy of entering new venture will be future growth engine, Companies near term performance looks challenging as raw material cost is elevated, resignation of CEO Pratik Pota will also have an overhang on the company and with this Russia Ukraine conflict they might have to take impairment cost on their Russian Business in this quarter. Jubilant Foodworks stock have recently corrected due to these concerns and now look attractive as the long term growth thesis looks intact for Jubilant. On performance front we expect company to report EPS of Rs.50 for FY23E, at CMP of ₹2796 PE works out to be 56x.Hence, investors can ACCUMULATE the stock in the price range of ₹2700-2750 for target price of ₹.3400.

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