Mumbai: Jubilant Foodwork: First pizza, then donuts and biryani and now kebabs. Jubilant FoodWorks is expanding its range of products. They bought a stake in BarbieQ Nation Hospitality. It acquired a 10.76 percent stake in BarbieQ Nation on Thursday. The deal was done for Rs 92 crore.
Jubilant Foodwork has franchises for Domino’s Pizza and Dunkin Donuts. The stock has seen a good rally in the recent past. Analysts say that due to this, there may be a break on the stock’s momentum. The company wants to raise Rs 1,000-1,200 crore soon from the initial public offer.
Riteish Gupta, analyst at Ambit Capital, said, “The new product may not increase the Return on Capital Employment (ROCE) in the near future, but will benefit in the long term. This is because eating out The trend is growing. ” He said that given the recent rise in the stock, it seems that the scope for further rise has been reduced.
27 analysts believe that Jubilant’s stock could come to Rs 2,437 in the next 12 months. Right now the share price is Rs 2,794. Last month, the company entered the Biryani segment. He said ‘Absolutely!’ Brand has introduced its biryani. He has opened three restaurants in Gurugram. Biryani is among the highest-order items on the digital platform.
During the lockdown, around 44.3 lakh orders were placed on Zomato on Biryani and 5.5 lakh on Swiggy. Kaustubh Pavaskar, an analyst at Sharekhan said, “Jubilant is confident that the proposed investment will create value for shareholders in the long term. The introduction of Biryani and Chineji Food will help the company increase its stake in the QSR space. It will be long term. Will be beneficial for you. “
In the last three months, Jubilant’s stock has gained 18 percent. The stock has gained 60 per cent in the last six months. At present, it is trading at 71 times the estimated earnings for the next financial year or 33 times the book value. The valuation of this stock has always been high. The reason for this is that its profit growth (CAGR) has been 22 percent in the last 5 years.
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