Sharekhan has issued a ‘Buy’ recommendation for Jubilant FoodWorks, setting a target price of ₹799 in its latest research report. The brokerage firm remains optimistic about the company’s long-term growth potential despite recent profit declines.
Jubilant FoodWorks, the master franchisee for Domino’s Pizza in India, reported a 31.55% decline in consolidated net profit for the September 2024 quarter, standing at ₹66.53 crore. However, its revenue grew from ₹1,368.63 crore to ₹1,954.72 crore, indicating strong sales momentum.
Despite the profit drop, analysts remain positive. Nuvama Institutional Equities maintained a ‘Hold’ rating, increasing its target price from ₹568 to ₹631, citing 2.8% like-for-like growth and a strong focus on delivery innovations. Similarly, MK Global raised its target price to ₹680 with an ‘Add’ rating.
Jubilant FoodWorks’ stock has seen significant fluctuations over the past year. On March 14, 2024, it hit a low of ₹420.85, then surged 70% in six months, reaching ₹715.15 on September 23, 2024. Currently, the stock trades about 9% below this peak.
With positive brokerage outlooks and strong revenue growth, investors should evaluate Jubilant FoodWorks’ stock potential carefully before making investment decisions.
