Jubilant FoodWorks share price jumps 5% after 7-fold YoY jump in Q4 profit
Jubilant FoodWorks share price surged a day after reporting Q4 results. The company's consolidated net profit for Q4FY24 jumped over 630 per cent YoY to ₹208.25 crore, with revenue rising by 24 per cent YoY.
Jubilant FoodWorks share price rose almost 5 per cent in morning trade on BSE on Thursday, May 23, a day after the company reported its March quarter scorecard. Jubilant FoodWorks share price opened at ₹495.25 against its previous close of ₹479.15 and soon rose 4.8 per cent to the level of ₹501.95. The stock, however, pared its gains and traded 1.65 per cent higher at ₹487.05 around 9:35 am.
Jubilant FoodWorks Q4 result
On Wednesday, May 22, Jubilant FoodWorks reported a consolidated net profit of ₹208.25 crore for Q4FY24, up over seven-fold or nearly 630 per cent year-on-year (YoY) against a profit of ₹28.54 crore in the same quarter last year.
Also Read: Jubilant FoodWorks sets target to open over 5,500 Domino's Pizza stores globally in medium term
Consolidated revenue from operations for the quarter under review rose nearly 24 per cent YoY to ₹1,572.8 crore from ₹1,269.8 crore in Q4FY24.
As per the company's exchange filing, Jubilant FoodWorks added 89 stores in India across all brands in Q4FY24.
Brokerages remain positive about Jubilant FoodWorks
Several brokerage firms expressed positive views about the company's growth prospects after the Q4 result.
Brokerage firm Nirmal Bang has an 'accumulate' call on the stock with a target price of ₹460, citing the company's Q4FY24 performance was in-line with estimates.
"While we remain structurally positive in the long term, led by likely recovery in demand sentiment beyond the near term, the potential success of the loyalty program, benefits from the recent focus on value and higher contribution from non-Domino’s business over the medium term, we maintain our “accumulate” rating as the current valuation is expensive," said Nirmal Bang.
Brokerage firm Emkay Global Financial Services upgraded the stock to an 'add' from a 'sell', pegging the target price of ₹525.
Emkay underscored that Jubilant FoodWorks is aggressively leading in a weak demand scenario and gaining volumetric share with the waiver of delivery charge.
"In our view, the 12 per cent delivery growth for Jubilant FoodWorks is only a precursor to an even better growth in Q1FY25E, as the benefit of the waiver was for less than 10 days in Q4. With such investments, Jubilant FoodWorks is recruiting new consumers; this should drive longer-term gains," said Emkay.
"Despite a visible headwind, EBITDA margin is expected to improve from Q4 levels, with cost efficiencies and benign raw material costs. Expansion of new formats (Popeyes/Hong’s) should see an acceleration, with 50/25 additions in FY25, along with continued expansion for Domino’s with 180 stores," Emkay added.
The brokerage firm sees a consistent growth uptick for Jubilant FoodWorks in FY25, which, as per its estimates, should drive more than 20 per cent EBITDA growth.
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