Shares of Jubilant Foodworks Ltd. they jumped to a record high as analysts continued to be useful in that company, citing, among other things, new brands, rapid store expansion and sales recovery.
That’s despite a drop in operator Domino’s Pizza and Dunkin ’Donuts’ net profit in India of 35% consecutively to 69.51 croup in the quarter ended June, according to an exchange report.
Its revenue fell 14% from the previous quarter to 893.18 kroner.
Operating profit or Ebitda of the Noida-based company fell 15% year-on-year, to 212.27 million kroner.
The margin decreased to 23.77% from 24.14%.
Pratik Pota, chief executive officer and permanent director at Jubilant Foodworks, said growth accelerated after the lock was eased and that momentum in June was significantly higher with an almost complete return on revenue. The company, which opened 29 new stores during the quarter ended in June, aimed to open 150-175 stores in the current fiscal period.
Jubilant Foodworks shares in the afternoon trade on Thursday recorded as much as 12% to a record high of 3,513 kuna per piece. Shares have risen more than 21% to date in 2021.
Of the 32 analysts who follow the company, 22 have a “buy” and five recommend a “hold” and a “sell”, according to Bloomberg data. The average consensus price for 12 months indicates a minus of 4%.
Here’s what brokerage houses have to say about Jubilant Foodworks ’earnings in the June quarter.
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It recommends a ‘purchase’ with a target price of Rs 3,412 per piece.
Aggressive plans to expand stores, a quick recovery from the impact of the second wave will be key drivers of growth.
Introduction of delivery fees to mitigate the loss of revenue that is well absorbed by consumers.
He expects the margin to be maintained thanks to calibrated prices and the introduction of new products.