Jubilant FoodWorks share price jumps 5% after 7-fold YoY jump in Q4 profit

Jubilant FoodWorks Q4 result

On Wednesday, May 22, Jubilant FoodWorks reported a consolidated nett net of ₹208.25 crore for Q4FY24, up implicit seven-fold oregon astir 630 per cent year-on-year (YoY) against a nett of ₹28.54 crore successful the aforesaid 4th past year.

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Consolidated gross from operations for the 4th nether reappraisal roseate astir 24 per cent YoY to ₹1,572.8 crore from ₹1,269.8 crore successful Q4FY24.

As per the company's speech filing, Jubilant FoodWorks added 89 stores successful India crossed each brands successful Q4FY24.

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Brokerages stay affirmative astir Jubilant FoodWorks

Several brokerage firms expressed affirmative views astir the company's maturation prospects aft the Q4 result.

Brokerage steadfast Nirmal Bang has an 'accumulate' telephone connected the banal with a people terms of ₹460, citing the company's Q4FY24 show was in-line with estimates.

"While we stay structurally affirmative successful the agelong term, led by apt betterment successful request sentiment beyond the adjacent term, the imaginable occurrence of the loyalty program, benefits from the caller absorption connected worth and higher publication from non-Domino’s concern implicit the mean term, we support our “accumulate" standing arsenic the existent valuation is expensive," said Nirmal Bang.

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Brokerage steadfast Emkay Global Financial Services upgraded the banal to an 'add' from a 'sell', pegging the people terms of ₹525.

Emkay underscored that Jubilant FoodWorks is aggressively starring successful a anemic request script and gaining volumetric stock with the waiver of transportation charge.

"In our view, the 12 per cent transportation maturation for Jubilant FoodWorks is lone a precursor to an adjacent amended maturation successful Q1FY25E, arsenic the payment of the waiver was for little than 10 days successful Q4. With specified investments, Jubilant FoodWorks is recruiting caller consumers; this should thrust longer-term gains," said Emkay.

"Despite a disposable headwind, EBITDA borderline is expected to amended from Q4 levels, with outgo efficiencies and benign earthy worldly costs. Expansion of caller formats (Popeyes/Hong’s) should spot an acceleration, with 50/25 additions successful FY25, on with continued enlargement for Domino’s with 180 stores," Emkay added.

The brokerage steadfast sees a accordant maturation uptick for Jubilant FoodWorks successful FY25, which, arsenic per its estimates, should thrust much than 20 per cent EBITDA growth.

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Disclaimer: The promoters of HT Media Ltd, which publishes Mint, and Jubilant Foodworks are intimately related. There are, however, nary promoter cross-holdings.

The views and recommendations supra are those of idiosyncratic analysts, experts, and brokerage firms, not Mint. We counsel investors to consult certified experts earlier making immoderate concern decisions.

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Published: 23 May 2024, 09:52 AM IST