Jubilant Foodworks – Q2 FY20 (Unaudited – Cons.)
Share price – 1435
Total revenue from operations at 988.05 Cr
889.78 Cr (11.13%) YoY | 949.11 Cr (4.12%) QoQ
Six month ended revenue: 1947.1 Cr Vs. 1753.01 Cr (11.02%)
Net Profit of 72.98 Cr
75.55 Cr (-3.43%) YoY 71.48 (2.07%) QoQ
Six month ended Net Profit: 144.46 Cr Vs. 147.68 Cr (-2.14%)
EPS (in Rs.) 5.56
5.73 YoY | 5.43 QoQ
Six months ended at EPS: 10.99 Vs. 11.19
View: The result is improved. YoY and QoQ revenue up but profit down mainly for high depreciation in the tune of INR 85 Cr Vs. 39.4 Cr in the corresponding previous quarter and exceptional Item of INR 12 Cr for provision created against investments made by Jubilant FoodWorks Employee Provident Fund Trust, in the corporate bonds of DHFL, Reliance Capital & IL&FS and fully provided for on account of prevailing uncertainties. EBITDA improved significantly despite the slow down in the various sectors.
Business Highlights & Updates:
Standalone Q2FY EBITDA is around INR 235.0 Cr Vs. 147.5 Cr in Q2FY19 Vs. 161.5 Cr in Q2FY19. EBITDA Margin is around 23.8% Vs. 16.7% Vs. 16.4%.
Sales growth for Domino’s Pizza stood at 6.5% for the quarter (i.e. sales growth of stores that were not spilled this FY and PY). Same-Store Growth (SSG) for Domino’s Pizza was 4.9%, lapping a high base of 20.5% last year.
1,283 restaurants as of 30th September 2019 across 276 cities. 1 city/state added (Agartala, Tripura), 1 city exited (Ramnagar, Karnataka) in Q2 FY20. Domino‟s Pizza – 40 Stores opened, 6 Stores closed. Total at 1,283. Store opening highest in the last 15 quarters. Bangladesh: Opened second store in Bangladesh
Dunkin’s Donuts 30 restaurants as of 30th September 2019 across 10 cities.
ROE and ROCE is around 24% and 43% respectively and book value per share is around INR 101 per share and share is currently trading at 14.1x of its book value. The company is currently trading at an annualized PE of around 65 which looks expensive. Promoter holding in the company is around 41.9% and stable in QoQ and YoY, FIIs and mutual fund hold around 34.5% and 13% respectively which is too strong.
Share price high 1518 and now 1422. Jubilant FoodWorks Limited (JFL/Company) is part of the Jubilant Bhartia group and is one of India’s largest foodservice company, with a network of 1,283 Domino’s Pizza restaurants across 276 cities (as of September 30, 2019). The Company has the exclusive rights to develop and operate Domino’s Pizza brand in India, Sri Lanka, Bangladesh, and Nepal. At present, it operates in India, and through its subsidiary companies’ in Sri Lanka and Bangladesh. The Company also has exclusive rights for developing and operating Dunkin’ Donuts restaurants for India and has 30 Dunkin’ Donuts restaurants across 10 cities in India (as of September 30, 2019). JFL has entered into the Chinese cuisine segment with its first owned restaurant brand, ‘Hong’s Kitchen’ and has 1 Hong’s kitchen restaurant across 1 city in India (as of September 30, 2019).
Their brand Dominos Pizza is highly reputed and very famous among the youngster due to youngster population growth in the country and also expansion by the company in various Tier II & Tier III cities with more focus towards online sales of their Pizza and others the growth outlook remain stable. Long term investors can continue with the company with a target price of INR 1800.
Risk: Highly volatile business any negative sentiments against the fast-food chains and restrictions can correct and harm the share price.
Disclaimer: Views are shared based on market research and study and personal in nature. Others can take different views and opinions. Please do a thorough study before entering or exit the shares.
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Share price – 1435
Total revenue from operations at 988.05 Cr
889.78 Cr (11.13%) YoY | 949.11 Cr (4.12%) QoQ
Six month ended revenue: 1947.1 Cr Vs. 1753.01 Cr (11.02%)
Net Profit of 72.98 Cr
75.55 Cr (-3.43%) YoY 71.48 (2.07%) QoQ
Six month ended Net Profit: 144.46 Cr Vs. 147.68 Cr (-2.14%)
EPS (in Rs.) 5.56
5.73 YoY | 5.43 QoQ
Six months ended at EPS: 10.99 Vs. 11.19
View: The result is improved. YoY and QoQ revenue up but profit down mainly for high depreciation in the tune of INR 85 Cr Vs. 39.4 Cr in the corresponding previous quarter and exceptional Item of INR 12 Cr for provision created against investments made by Jubilant FoodWorks Employee Provident Fund Trust, in the corporate bonds of DHFL, Reliance Capital & IL&FS and fully provided for on account of prevailing uncertainties. EBITDA improved significantly despite the slow down in the various sectors.
Business Highlights & Updates:
Standalone Q2FY EBITDA is around INR 235.0 Cr Vs. 147.5 Cr in Q2FY19 Vs. 161.5 Cr in Q2FY19. EBITDA Margin is around 23.8% Vs. 16.7% Vs. 16.4%.
Sales growth for Domino’s Pizza stood at 6.5% for the quarter (i.e. sales growth of stores that were not spilled this FY and PY). Same-Store Growth (SSG) for Domino’s Pizza was 4.9%, lapping a high base of 20.5% last year.
1,283 restaurants as of 30th September 2019 across 276 cities. 1 city/state added (Agartala, Tripura), 1 city exited (Ramnagar, Karnataka) in Q2 FY20. Domino‟s Pizza – 40 Stores opened, 6 Stores closed. Total at 1,283. Store opening highest in the last 15 quarters. Bangladesh: Opened second store in Bangladesh
Dunkin’s Donuts 30 restaurants as of 30th September 2019 across 10 cities.
ROE and ROCE is around 24% and 43% respectively and book value per share is around INR 101 per share and share is currently trading at 14.1x of its book value. The company is currently trading at an annualized PE of around 65 which looks expensive. Promoter holding in the company is around 41.9% and stable in QoQ and YoY, FIIs and mutual fund hold around 34.5% and 13% respectively which is too strong.
Share price high 1518 and now 1422. Jubilant FoodWorks Limited (JFL/Company) is part of the Jubilant Bhartia group and is one of India’s largest foodservice company, with a network of 1,283 Domino’s Pizza restaurants across 276 cities (as of September 30, 2019). The Company has the exclusive rights to develop and operate Domino’s Pizza brand in India, Sri Lanka, Bangladesh, and Nepal. At present, it operates in India, and through its subsidiary companies’ in Sri Lanka and Bangladesh. The Company also has exclusive rights for developing and operating Dunkin’ Donuts restaurants for India and has 30 Dunkin’ Donuts restaurants across 10 cities in India (as of September 30, 2019). JFL has entered into the Chinese cuisine segment with its first owned restaurant brand, ‘Hong’s Kitchen’ and has 1 Hong’s kitchen restaurant across 1 city in India (as of September 30, 2019).
Their brand Dominos Pizza is highly reputed and very famous among the youngster due to youngster population growth in the country and also expansion by the company in various Tier II & Tier III cities with more focus towards online sales of their Pizza and others the growth outlook remain stable. Long term investors can continue with the company with a target price of INR 1800.
Risk: Highly volatile business any negative sentiments against the fast-food chains and restrictions can correct and harm the share price.
Disclaimer: Views are shared based on market research and study and personal in nature. Others can take different views and opinions. Please do a thorough study before entering or exit the shares.
RD Stock (“High Returns with Low Risk is the Key”)
stock tips
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