Shares of Jubilant Food rose 7 per cent to hit an all-time high of Rs 4,166.40 today on BSE on strong growth prospects. In the last one month, the stock has delivered 35 per cent return after the company reported a healthy set of numbers for the quarter ended June 2021.
As per the share price history, Jubilant Food’s share on BSE closed at Rs 3,083.4 on July 19, 2021. It hit a new 52-week high of Rs 4,166.40 in today’s morning session.
The company reported a net profit of Rs 63 crore for the quarter ended June 2021 compared to a net loss of Rs 72.6 in the year-ago period. Revenue from operations grew 131 per cent to Rs 879 crore in the June-ended quarter against Rs 380 crore a year ago.
The stock opened 0.7 per cent higher at Rs 3,918.00 against the previous close of Rs 3,889.75. It has gained 115.5 per cent in the last one year and risen 48 per cent since the beginning of this year.
With a market capitalisation of Rs 54,341.55 crore, the share stands higher than 5 day, 10 day, 20 day, 50 day, 100 day, and 200 day moving averages.
“We believe benefits from developing superior-tech capabilities (over long-term) are now visible. We like the focus towards (1) growth (store expansion, higher emphasis on digital infra), (2) developing synergies with new brands (Hong’s Kitchen, Ekdum! and Popeyes) and (3) expanded organisational bandwidth. Investments on a strong fleet gives it an edge over peers,” ICICI Securities said.
“On the technology front, JUBI is significantly expanding its customer experience, analytics, and product innovation teams. The personalisation of purchases and identifying triggers for buying in various customer segments would be important growth areas,” noted Motilal Oswal.
“We believe QSRs are in a sweet spot for rapid growth over the next 5–10 years in India and offer scope for a 25–30% operating profit CAGR for several players – Domino’s is the most efficient among them,” the brokerage house added.
According to MarketsMojo, the company has a strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.80. The technical trend has improved from Mildly Bullish on July 22, 2021, and the stock is technically in a Bullish range now. Multiple factors for the stock are bullish like MACD, Bollinger Band, KST, OBV and DOW. The company has high institutional holdings at 52.49%. However, it noted that the valuation is very expensive right now.
Commenting on the performance for Q1 FY22, Shyam S. Bhartia, Chairman and Hari S. Bhartia, Co-Chairman, Jubilant Foodworks Limited in a joint statement said, “Q1 FY22 was one of the most challenging quarters with the sudden onslaught of the second wave of the pandemic. Given the severity of the situation, our most important priority during the quarter was to support our employees and their families.”
During the quarter, the company said it opened 29 new stores — including 20 new Domino’s stores and 3 new stores each for Hong’s Kitchen, Ekdum! and Dunkin” Donuts — despite the on-ground disruption caused by the second-wave of COVID-19.