Mehabe score: 6 G Factor: 4 Piotski Score: 6 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 6.
Description
Jubilant FoodWorks Limited (JFL/Company) is part of the Jubilant Bhartia Group and is one of the India’s largest food service Company. The Company holds the master franchise rights for two international brands, Domino’s Pizza and Dunkin’ Donuts addressing two different food market segments. The Company also launched its first homegrown brand – Hong’s Kitchen in Chinese cuisine segment.Site:JUBLFOODMain Symbol:JUBLFOOD
Stock trades at 4331.0, above its 50dma 3870.98. It also trades above its 200dma 3226.08. The stock remains bullish on techicals
The 52 week high is at 4272.55 and the 52week low is at 2099.60
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
– has been maintaining a healthy dividend payout of 27.70%
Weakness
– Stock is trading at 39.62 times its book value
-The company has delivered a poor sales growth of 6.32% over past five years.
-Promoter holding has decreased over last 3 years: -3.13%
Competition
– The industry trades at a mean P/E of 136.3x. Jubilant Food. trades at the industry’s max P/E of 136.31x. JUBLFOOD trades at a P/E of 136.0x
– Industry’s mean G-Factor is 4.0 while the mean Piotski score is 6.0. JUBLFOOD has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 6.1%. The max 1- month return was given by Jubilant Food.: a return of 6.07 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 1116.0 cr compared to Rs 816.0 cr for period ended Sep 2020, a rise of 36.8%
Operating Profits reported at Rs 287.0 cr for period ended Sep 2021 vis-vis 216.0 for period ended Sep 2020 .
Operating Margins contracted -75.4 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 9.11 compared to Rs 5.27 for previous quarter ended Jun 2021 and Rs 5.76 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 4117.0 cr for period ended TTM vis-vis sales of Rs 3312.0 cr for the period ended Mar 2021, a healthy growth of 19.6%. The 3 year sales cagr stood at 4.9%.
Operating margins expanded to 25.0% for period ended TTM vis-vis 24.0% for period ended Mar 2021, expansion of 100.0 bps.
Net Profit reported at Rs 419.0 cr for period ended TTM vis-vis sales of Rs 232.0 cr for the period ended Mar 2021, rising 44.6%.
Company recorded a Net Profit CAGR of 9.4% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 751.0 cr for period ended Mar 2021 vis-vis Rs 728.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 18.0% compared to 23.0% over the last 3 Years. – The stock has given a return of 89% on a 1 Year basis vis-vis a return of 51% over the last 3 Years. – The compounded sales growth on a TTM bassis is 29% vis-vis a compounded sales growth of 3% over the last 3 Years. – The compounded profit growth on a TTM basis is 206% vis-vis a compounded profit growth of 5% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 41.41% vis-vis 41.72% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 5.45% vis-vis 5.37% for Jun 2021
Conclusion
– is expected to give good quarter
– has been maintaining a healthy dividend payout of 27.70% – Stock is trading at 39.62 times its book value
-The company has delivered a poor sales growth of 6.32% over past five years.
-Promoter holding has decreased over last 3 years: -3.13%
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 3870.98 and is trading at 4331.0, thus bullish price action wise.
