Jefferies has reiterated its “Buy” rating on Jubilant Foodworks stock, setting a target price of ₹1,000 per share. This suggests a potential upside of 32% from the current market price (CMP) of ₹754.90.
Key highlights from Jefferies’ analysis:
- High conviction idea:
- Jubilant Foodworks is considered a high-conviction idea, driven by improving fundamentals and strategic self-help measures.
- Outlook on same-store sales growth (SSSG):
- The outlook is optimistic, with SSSG expected to expand to mid-to-high single digits in the coming quarters, supported by a low base effect.
- EBITDA margin recovery:
- EBITDA margin bottomed out in early CY24 and is projected to improve further in subsequent quarters.
- Management’s strategy:
- The company is prioritizing growth over margins, indicating a strategic shift to expand its market presence.
Jefferies remains bullish on Jubilant Foodworks, emphasizing the company’s recovery trajectory and potential for sustained growth in the coming quarters.
Disclaimer
This article is for informational purposes only and does not constitute investment advice. Readers should perform their own research or consult a financial advisor before making investment decisions.
