Jubilant Foodworks - Q1 FY22 results and investor call takeaways - YES Securities

(Rating: NOT RATED)

Steady quarter, multiple levers for aggressive growth and tackling competition; Buy on dips

- View - The stock is trading at rich valuations of 64x FY23 and 51x FY24 earnings but is developing into a solid 2-3-year growth story. We expect the rich valuations to sustain given increasing aggression on footprint expansion and technology advancement, multiple levers to protect margins despite competition and a strong long-term growth potential with entry into multiple new brands and geographies. It remains a good stock to keep buying on dips.

- Quarter highlights - In-line quarter with revenue up 131% yoy, Dominos growth of 131%, delivery channel growth of 124%; EBITDA margins under slight pressure coming in at 24.1% given 80bps GM decline with PAT margin at 7.1%; 29 new stores opened in India - 20 Dominos with 5 new cities, 3 each of Ekdum, Hong's Kitchen and Dunkin; online ordering contribution to sales at 98.9% and app downloads strong at 6.8mn; 55% and 111% growth yoy in SL and Bangladesh, 2 stores opened in both markets.

- Sales recovery trends - Taking 1QFY20 as base, sales recovery was 94% for 1Q with 94.4% in April, 87.7% in May and 99.5% in June despite lower operating hours in June as well; small towns had better recovery, own platform did better.

Shares of Jubilant FoodWorks Ltd was last trading in BSE at Rs. 3074.15 as compared to the previous close of Rs. 3083.4. The total number of shares traded during the day was 16211 in over 3160 trades.

The stock hit an intraday high of Rs. 3096.9 and intraday low of 3025. The net turnover during the day was Rs. 49536773.

Source : Equity Bulls

Keywords