Introduction
Recently, Angel Broking came out with a research report on Jubilant Foodworks, the owner of Domino’s Pizza in India. According to the research report, Angel has recommended a BUY rating on JUBLFOOD. In this post, we will analyze the pros and cons of the company at current valuations and will analyze the Jubilant Foodworks share price forecast by the brokerage house.
About Jubilant Foodworks
Jubilant Foodworks is a well-known name among food lovers all over the major metros of India, owning the Domino’s Pizza franchise in India. The company opened its first store in New Delhi in 1996 and has since added 150 stores all over India every year for the last 4 years. The company aims to open 2000 stores by 2020-2021.
Financial Performance
The company has a stringent investment payback period of around 3 years per store, which has eased a bit lately. All stores are owned by the company itself, and all stores are profitable from day one. The growth of Quick Service Restaurants (QSR) has seen Same Store Sales Growth (SSSG) of 10%-15%.
Check the image below for the company’s last 10 years of financial data and other fundamental data.
So the financial data is very strong for the company. This is also a big positive for the company as they are almost debt-free. Investors should invest in these kinds of companies for long-term gains.
Jubilant Foodworks Share Price Forecast
As of writing this post, the Jubilant Foodworks share price is quoting around Rs. 1247.
According to the Jubilant Foodworks share price forecast done by Angel Broking, investors can consider buying this stock. The brokerage house suggests buying some at this level and adding more to any dips. This stock should be a multi-bagger in the coming years.
FAQs on Jubilant Foodworks Share Price Forecast
It all depends on your investment goals. Currently, Jubilant FoodWorks is offering an attractive entry point and if you believe the company will perform well in the long run, then it may be a good option for investing.
The specific targets cannot precisely be determined as stock markets are unpredictable. However, according to analysts’ views, this stock has a strong potential of making decent returns over a period of 5 years or above.
Absolutely! You can go ahead and purchase shares from any registered stockbroker through their online trading platform or other available options like a Demat account.
Yes, it is! In August 2020, Jubilant Foodsworks announced its intention to exercise a 1:5 bonus issue which means every shareholder gets five additional equity shares with a face value of Rs 2 each for every existing equity share held by them at that time. This basically halves down the existing market price per unit and provides a cost-efficient opportunity to investors who want to get back more stocks without shelling out an extra sum.
Conclusion
In conclusion, Jubilant Foodworks is a company with a strong financial background and a good growth rate. The company has been performing well in the Indian market and is expected to continue this performance in the future. Therefore, investors can follow the Jubilant Foodworks share price forecast given by Angel Broking and consider buying this stock for long-term gains. You can download the full research report by clicking here.
