Stocks

Broker's Call: Jubilant FoodWorks (Buy)

| Updated on September 17, 2019 Published on September 18, 2019

CapitalVia Global

Jubilant FoodWorks (Buy)

CMP: ₹1,252.2

Target: ₹1,420

Jubilant FoodWorks witnessed steady financial performance in Q1 FY20.

A strong uptick of 9.9 per cent y-o-y was witnessed in revenue and stood at ₹940 crore backed by improvement in customer demand. The company achieved same-store-sales growth (SSG) of 4.1 per cent in Domino’s Pizza. Though the growth has shrank in comparison to the corresponding quarter in the last fiscal due to the company’s splitting store strategy in order to tap the market and improve customer services.

In the very first quarter of FY 20, the company laid its focus on store expansion. It added 26 new outlets for its Domino’s Pizza chain in India. The total count of Domino’s store rose up to 1,249 across 276 cities. Through this, the company can have a wider market reach. Moreover, the company has made significant investment in its analytical and digital capabilities which has shown results in the form of encouraging growth in online orders.

Looking forward with this, it is expected to continue to add further momentum to online order placement on the back of real time customer insights.

We recommend BUY on Jubilant FoodWorks with a target price of ₹1,420.

Published on September 18, 2019
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