Jubilant FoodWorks - 3QFY17 Result Update - Too Fast Too Soon; Downgrade to HOLD - Reliance Securities

On the back of likely recovery in consumer demand in FY18E, we expect JFL to post 8% growth in SSS, which would also boost its EBITDA margins. We envisage JFL to report revenues of Rs31.3bn and Rs36.5bn and net profit of Rs1.5bn and Rs2.1bn in FY18E and FY19E, respectively. Based on expected EPS of Rs32.3, the stock currently trades at 31.2x FY19E earnings. Considering sharp rise in stock price in past one month, we have revised our recommendation on the stock to HOLD from BUY with an upwardly revised Target Price of Rs1071, based on 36x Dec'18 earnings.

Shares of Jubilant FoodWorks Ltd was last trading in BSE at Rs.991.65 as compared to the previous close of Rs. 1000.85. The total number of shares traded during the day was 32465 in over 1930 trades.

The stock hit an intraday high of Rs. 1009.65 and intraday low of 988.8. The net turnover during the day was Rs. 32353657.

Source : Equity Bulls

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