After recording about 58 per cent jump in profits on the back of strong delivery and takeaway channels furthered by operational adjustments, Jubilant FoodWorks share price fell 4 percent in the early trade on October 21.
The Domino's Pizza and Dunkin Donuts' parent company reported earnings per share of Rs 9.11 in the second quarter compared to the Rs 5.83 reported in the year-ago period.
Revenue rose by about 36.6 per cent to reach Rs 1100.7 crore, compared to the year-ago quarter.
Check what brokerages houses are saying:
Morgan Stanley
The research house has kept an “overweight” call on the stock with the target at Rs 5,000 as Q2 earnings beat estimates as well as consensus.
The broking firm remains bullish on the growth potential and a correction could be a good opportunity for long-term investors to engage, it said.
Credit Suisse
The research house has kept a “neutral” call with the target at Rs 3,800. Same-store sales growth trend was underwhelming in the context of strong consumer discretionary recovery.
Domino’s has a relatively lower market share in food delivery compared to dine-in and in the current phase, where consumers are going back to dine-in, Domino’s may see a slower recovery.
CLSA
The brokerage house has maintained an outperform call, with the target at Rs 4,050. The management is upbeat on growth prospects but is cautious on the near-term margin outlook.
CLSA likes the company’s ambition and aggression to build a portfolio of brands by leveraging its existing capabilities.
Jefferies
The research firm downgraded the stock to “hold” but raised the target to Rs 4,100 as Q2 revenues were in-line but better GM drove EBITDA surprise. The management commentary remains positive on growth and despite cost inflation, confidence is high on maintaining margin.
HSBC:
HSBC maintains a buy rating on Jubilant FoodWorks post Q2 results but raised its 12-month target price to Rs 4650 from Rs 3650 earlier.
