Home >Markets >Stock Markets >Jubilant FoodWorks breaks into the top 100 m-cap club

Jubilant FoodWorks that operates Domino’s Pizza and Dunkin’ Donuts in India on Thursday said it has entered the list of the top 100 companies in India by average market capitalization for the period between July to December 2020.

Its ranking in 2017 was 229, Pratik Pota, chief executive officer and whole-time director, Jubilant FoodWorks Ltd, said via a tweet, citing data from the Association of Mutual Funds in India (Amfi).

On the BSE, the company that popularized Domino’s Pizza in India—starting its first outlet in Delhi in 1996—had a market cap of 36,694.65 crore on Thursday.

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Reliance Industries, followed by Tata Consultancy Services Ltd and private lender HDFC Bank Ltd are the top three stocks in BSE’s listing of top 100 companies by market capitalization as of 14 January.

Jubilant FoodWorks is the only food service company in the BSE top 100 market cap club.

India’s food service market was severely impacted as the nationwide lockdown hit out-of-home consumption of prepared food. While home deliveries, which contribute significantly to Jubilant’s business, have been quick to recover, the dining-out market has been sluggish.

However, investors have been bullish on the recovery in the food service market led by large, organized players and QSR (quick-service restaurant)chains with strong delivery networks such as McDonald’s, KFC, Domino’s, Pizza Hut etc.

Smaller players, on the other hand, have also faced the brunt of the pandemic with permanent closures.

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Jubilant has firmed up its presence in the organized food service market, capturing a bigger share in varied cuisines. In late December, it announced an investment of 92 crore for an equity stake of 10.76% in Barbeque Nation Hospitality Ltd that runs the popular Barbeque Nation chain of restaurants.

In mid-December, it launched biryani brand Ekdum! In a BSE filing, it said that it has opened three restaurants in Gurugram for delivery, takeaway and dine-in under Ekdum!, which will also serve breads and kebabs.

The company also operates Chinese cuisine restaurants under the Hong’s Kitchen brand. Last year, it also rolled out a ready-to-cook range of sauces, gravies and pastes under the ChefBoss brand, capitalizing on the growing trend of home cooking.

In its September quarter earnings, Jubilant said that its sales momentum continued in October with revenue recovering to 96.2% of last year, driven by delivery channel growing by 16.3% and takeaway by 64.3%.

Jubilant had 1,264 Domino’s restaurants as of 30 September across 281 cities, apart from 26 Dunkin’ Donuts restaurants.

The company also has the exclusive rights to develop and operate Domino’s Pizza in India, Sri Lanka, Bangladesh and Nepal.

The promoters of HT Media Ltd, which publishes Mint, and Jubilant FoodWorks are closely related. There are, however, no promoter cross-holdings.

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