Jubilant Foodworks - March 2013 Results Preview - Motilal Oswal

- We expect JUBI to report 36.4% sales growth to INR3.86b. LTL sales growth is likely to be ~15%.

- While consumer demand has moderated, we believe JUBI's recent weak SSS performance is also a function of aggressive new store rollouts.

- We expect the company to post 100bp contraction in EBITDA margin to 17% due to Dunkin Donuts expansion costs and lower SSS growth. A 46% increase in depreciation and 130bp increase in tax rate would reduce PAT growth to 24%. We estimate PAT at INR363m.

- We expect JUBI to add ~23 stores during 4QFY13.

- The stock trades at 42.1x FY14E EPS and 28.1x FY15E EPS and adequately discounts the positives in our view. Neutral.

Source : Equity Bulls

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