Kotak raises Jubilant Foodworks stock target, keeps Reduce rating

EditorAhmed Abdulazez Abdulkadir
Published 02/01/2025, 09:12 pm
JUBI
-

On Thursday, Kotak analyst updated the price target for Jubilant Foodworks Ltd (NS:JUBI:IN), increasing it to INR690 from the previous INR540. Despite the higher price target, the Reduce (3) stock rating remains unchanged. Following a recent meeting with Jubilant Foodworks' CFO Suman Hegde, Doshi shared several insights into the company's strategy and performance.

Jubilant Foodworks, known for operating Domino's Pizza (NYSE:DPZ) in India, is intensifying its focus on the brand and aiming for higher volume growth. The company is also working on margin expansion, which is expected to be a gradual process due to ongoing investments. In addition, the company's approach to Popeyes includes prioritizing profitability and adjusting its store expansion strategy.

The analyst anticipates that Domino's will see an acceleration to high single-digit or double-digit like-for-like revenue growth in the second half of the year. In light of these expectations, the revenue forecast for Domino's has been increased, and earnings estimates have been adjusted. The fair value (FV) estimate has been rolled over, leading to the new price target of INR690.

The report concludes with a note on valuation, mentioning that the current expensive valuation of Jubilant Foodworks' shares is a factor that prevents the analyst from adopting a more positive stance, even though Domino's India is showing signs of recovery.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.