Jubilant Foodworks Q1 Update: Growth trajectory sustains but analyst views mixed

Shares of Jubilant FoodWorks Ltd. are in focus on Monday, July 7, as the company’s good performance continued in the first quarter, as per its business update. However, brokerages have a mixed views on the stock.Jubilant Foodworks’ consolidated revenue increased 17% to ₹2,261.4 crore in the June quarter. Its standalone revenue was up 18.2% at ₹1,701.6 crore.
Dominos India’s like-for-like (LFL) growth was at 11.6%. It added 61 new stores, taking the total to 2,240 stores.
Meanwhile, Dominos Turkey’s LFL growth declined 2.2% in the quarter under review. It opened seven stores and closed one store.

Morgan Stanley

Brokerage firm Morgan Stanley has an “overweight” rating on Jubilant Foodworks, with a price target of ₹781 per share, indicating an upside of 10% from its previous closing price of ₹710.4 apiece.The brokerage said the company’s standalone revenue increase for the first quarter is in line with its estimates.

It said Jubilant’s top-line was led by LFL growth of 11.6% compared to the brokerage’s estimate of 10% same store sales growth (SSSG) and 10% increase in store count from the previous year. Jubilant had added 40 stores in the previous quarter.

Morgan Stanley said the company’s strong LFL growth momentum continued from the previous quarter with a 12.1% increase.
Its consolidated revenue for the June quarter was up 17%, which was 3% above Morgan Stanley’s estimates.It said Domino’s Turkey’s LFL growth declined 2.2% in comparison to a 0.9% increase in the previous quarter. It added six new stores in comparison to eight in the fourth quarter of FY25, bringing the store count to 752 stores.

CLSA

Brokerage firm CLSA has an “underperform” rating on Jubilant FoodWorks with a price target of ₹519 per share, implying a potential downside of 26.9% from its previous closing price.It said the company’s first quarter standalone sales, which increased 18% to ₹1702 crore from the previous year, were 1% below the brokerage’s estimates.

Domino’s India’s LFL growth of 11.6% was in-line with CLSA’s estimate of 12%.

Its consolidated net sales growth increased 17% from the previous year, which was slightly below estimates and dragged down by negative 2.2% LFL growth for Domino’s Turkey, it said.

CLSA said it believes investors will be focused on profitability in its results to judge if high LFL growth is translating to better margins.

Of the 33 analysts that have coverage on the stock, 17 have a “buy” rating, while eight each have “hold” and “sell” ratings.

Shares of Jubilant FoodWorks ended the previous session 0.5% up. The stock has declined nearly 4% this year, so far.

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