What investors must do with foodworks post Q4 work; Buy, sell, or hold it?
Food price of Jubilant has touched a 52-week high of Rs 3,278.35, up more than 3 percent in early trading on June 16 a day, after the company reported March quarter income.
The company on June 15 posted a three-fold surge in consolidated net profit to Rs 105.30 Crore for the fourth quarter which ended March 2021. The company has posted a net profit of Rs 32.53 Crore in the same quarter last year.
Revenue from operations rose 14.21 percent to RS 1,037.85 Crore versus Rs 908.75 Crore.
The council has recommended the final dividends of Rs 6 (i.e. 60%) per share equity nominal value of Rs 10 for the financial year 2020-21, subject to the approval of shareholders in the next annual general meeting.
Final dividends, if approved, will be paid / sent on or before September 25, 2021.
Broking House Cut FY22 EPS estimates 3 percent due to the impact of Covid-19 in Q1. Margin upside is not possible here, the new format of success is the key that can be paid. Credit Suisse maintains a neutral rating because of stretching assessment.
Growth driver exists, and the execution will be the key. Portfolio expansion to encourage growth.
6-9 percent income growth looks more than FY22-23. The changed management team will address developing business needs. The brave approach to capture food service opportunities makes a structural game company.
Positive management comments on the potential scale, while we remain constructive in the medium-term scaling strategy.
Positive growth supports premium multiples. The April / May 2021 revenue recovery rate is at 94.4 percent / 87.7 percent yoy with June getting better. JPMorgan likes strong on-ground execution capabilities supported by digital investments, while Popeyes becomes a promising addition to a mixture of portfolios. Broking House remains overweight given the prospect of medium-term growth.
Prabhudas Lillasher believes that the company is in the process of appearing as multi-multi-brand cuisine playing with entry into Biryani (Ekdum), Chinese food (hongs kitchen) and chicken segment (Popeyes).
It also believes that companies must make a significant investment for years to make popeyes successful, more so considering the KFC brand positioning.
Stay positively given the growth and determination of strong positions and growth in the dominos core business.
