Brokerage firms have turned bullish on Jubilant FoodWorks Limited following its Q3 results, citing b performance by Domino’s, improved EBITDA margins and rapid growth in Popeyes.
Shares of Jubilant FoodWorks closed at Rs 553.75 on Tuesday, up 1.08 percent. The stock remains about 26 percent below its 52-week high. Brokerages stated that the company’s growth trajectory is returning, with potential upside of more than 50 percent from current levels.
Domino’s Records Double-Digit Same Store Sales Growth
Jubilant FoodWorks reported double-digit Same Store Sales Growth for Domino’s Pizza in Q3. The company’s standalone revenue increased 18 percent year-on-year, while total order volumes rose 17.3 percent.
EBITDA Margin Reaches Nine-Quarter High
According to brokerage reports, the company’s Pre-Ind AS EBITDA margin reached its highest level in the past nine quarters. The improvement was attributed to operating leverage and better cost control. Brokerages noted that the margin expansion was driven by efficiency gains rather than price increases.
Jefferies Maintains BUY Rating With Rs 850 Target
Jefferies retained its BUY rating on Jubilant FoodWorks and set a target price of Rs 850. From the current level of Rs 553, this implies a potential return of about 53 percent. The brokerage stated that margin expansion despite weak Same Store Sales Growth conditions reflects operational strength. It added that the delivery business remains b, while improvement in the dine-in segment may be seen in upcoming quarters.
Citi Sets Rs 800 Target Price
Citi Brokerage assigned a BUY rating with a target price of Rs 800, indicating upside potential of about 44 percent from current levels. The brokerage said Q3 performance reflected improvement in both growth and profitability, supported by Same Store Sales Growth and higher EBITDA margins. It stated that the company is confident of sustaining 5 to 7 percent Same Store Sales Growth despite a high comparison base.
Popeyes Delivers Third Consecutive Quarter of Double-Digit Growth
Popeyes recorded double-digit Same Store Sales Growth for the third consecutive quarter. Citi Brokerage stated that Popeyes could emerge as a major growth driver in the coming years. The company has set a target to achieve a Pre-Ind AS EBITDA margin of 15 percent by 2028.
HSBC Sets Rs 700 Target Price
HSBC assigned a target price of Rs 700, indicating potential upside of about 26 percent. The brokerage reported that profit increased 5 percent, driven by improved gross margins supported by price increases and new product launches. It also noted an improvement of about 200 basis points in EBITDA margin due to better cost control. HSBC stated that the company could achieve 5 to 7 percent Same Store Sales Growth despite a high comparison base.
Stock Performance Overview
Over the past month, shares of Jubilant FoodWorks have risen about 6 percent. The stock declined 11.9 percent over the past six months and 18.27 percent over the past year. Over two years, the stock gained 14.87 percent, and over three years it increased 20.29 percent. The company’s current market capitalization on the BSE stands at approximately Rs 37,941 crore.
