CLSA has retained a ‘Sell’ rating on Jubilant FoodWorks with a target price of ₹519, even as the company posted a solid set of Q4FY25 numbers. While revenue and EBITDA performance were in line or better than estimates, margin pressures and international weakness have kept the brokerage cautious.
The company reported a 93% YoY jump in net profit to ₹49.5 crore, driven by a 19.1% rise in revenue to ₹1,587 crore. EBITDA grew 19.7% YoY to ₹305.4 crore, with margin steady at 19.2% versus 19.1% a year ago.
CLSA said standalone sales growth of 19.2% and EBITDA beat of 6% were encouraging, but gross margins contracted by 209 basis points — in line with estimates — reflecting cost pressures. Domino’s India like-for-like growth of 12.1% was strong, though it came against a tougher base.
The brokerage flagged continued weakness in Turkey and expects further clarity on debt refinancing and the rollout of 250+ new stores across brands.
Disclaimer: This article is based on the brokerage report by CLSA. It does not constitute investment advice.
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