Jubilant Foodworks Ltd - Optimism built on caveats; Retain SELL - Emkay

Reco: SELL
CMP: Rs 1185
Target Price: Rs 925

- Annual Report 2013 states that it's a brand built by 20,000 brand ambassadors (employees); this has helped corner a 62% share of the organized pizza market

- Product innovation, store expansion and expanding city coverage – Key positives

- Financial matrix distorts; EBITDA margin, ROCE and ROE decline; even free cash generation dips in FY13 – Key negatives

- Management's optimism built on caveats; Emkay believes softer patch might continue in FY14E; Retain SELL

Source : Equity Bulls

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