Jubilant FoodWorks shares surge nearly 2% as Jefferies hikes target price by 35%

Jubilant FoodWorks Limited saw its shares climb nearly 2% today, trading at ₹752, following a significant target price hike by Jefferies. The brokerage firm has pegged the stock as a high-conviction buy idea, revising its target price to ₹1,000 from the previous ₹800.

Details:
Jefferies highlighted a robust outlook for Jubilant FoodWorks, citing improvements in the company’s same-store sales growth (SSSG) and strategic self-help measures. Key points from Jefferies’ report include:

• Strong Growth Potential: SSSG expected to expand to mid-to-high single digits in the coming quarters.
• EBITDA Margin Recovery: Margins have bottomed out in early CY24 and are poised to improve further.
• Focus on Growth: Management’s prioritization of growth over margins aligns with a promising long-term strategy.

Key Stats:

• Current market price: ₹752
• Previous close: ₹739.20
• Jefferies’ new target price: ₹1,000
• Upside potential: 35%

Outlook: Jubilant FoodWorks’ focus on growth and operational improvements reinforces its strong position in the restaurant sector, with Jefferies’ bullish outlook reflecting confidence in its long-term growth trajectory.

Share Price history