Jubilant FoodWorks Q3 Result


Jubilant FoodWorks Limited (JFL), a part of the Jubilant Bhartia Group and one of India’s largest food service companies, reported disappointing Q3 numbers on January 31, 2024.

The company holds the master franchise rights for international brands such as Domino’s Pizza, Dunkin’ Donuts, and Popeyes, catering to different segments of the food market.

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Additionally, JFL has also launched its own Chinese cuisine brand, Hong’s Kitchen.

In Q3, sales reached 1378 Cr, marking a 3% increase YoY. However, EBIDT stood at 280 Cr, down by 2% YoY, and Net Profit was 65 Cr, down by 18% YoY.

The company has faced pressure on overall sales and margins, resulting in the stock underperforming for the past 2.5 years.

Jubilant FoodWorks 2year Chart on weekly basis.

The stock of Jubilant FoodWorks Limited is currently trading at a high Price-to-Earnings (P/E) ratio of 150, indicating that the stock price is relatively high compared to the company’s earnings. Additionally, the book value per share is Rs 31.6, representing the theoretical value of the company’s assets that shareholders would receive in the event of liquidation.

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Furthermore, the Return on Capital Employed (ROCE) stands at 16.2%, reflecting the efficiency and profitability of the company’s capital investments. This suggests that the company is effectively using its capital to generate profits. Additionally, the Return on Equity (ROE) is 18.1%, which measures the company’s profitability in relation to shareholders’ equity. A higher ROE indicates that the company is generating more profit with the money shareholders have invested.

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