CLSA has maintained its Underperform rating on Jubilant Foodworks, setting a target price of ₹519, suggesting a downside from the current levels. While the company reported strong like-for-like (LFL) growth in its core India business during the first quarter, CLSA remains cautious on margin performance and overall profitability.
Jubilant Foodworks posted standalone sales of ₹17.02 billion in Q1FY26, up 18.2% year-on-year and 1% above CLSA’s estimates. Domino’s India delivered an LFL growth of 11.6%, broadly in line with the estimate of 12.0%. However, consolidated net sales growth came in at 17% YoY—slightly below expectations—primarily due to a 2.2% decline in LFL sales for Domino’s Turkey.
CLSA noted that while the domestic business continues to show solid top-line momentum, the key focus for investors will be on whether this high LFL growth is translating into improved margins. The brokerage remains cautious on the stock, citing uncertainty around profitability despite strong revenue performance.
Disclaimer: The views expressed above are those of CLSA and do not constitute investment advice. This article is for informational purposes only.
