Feb'25 View on Jubilant Foodworks Ltd

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 and now has Popeyes in its food segment. The Company also launched its first homegrown brand – Hong’s Kitchen in Chinese cuisine segment. After making a recent high of 796, the stock took support at 200EM and looks to bounce and cross 800 and above basis following positive inputs.  JUBI’s standalone revenues grew 19% yoy led by acceleration in Dominos.  Domino’s delivery channel growth print & engagement metric were impressive.  We expect earnings to grow by 46.9% in FY26E & grow by 40.9% in FY27E.  Stock is currently trading at valuation of 96.0x P/E FY27E EPS.  We value JUBI using Sum of the Parts (SoTP) based fair value of Rs 680.  Domino’s India is on a turnaround path. We upgrade to ADD from Reduce.