Morgan Stanley has reiterated its overweight rating on Jubilant FoodWorks with a target price of ₹781, highlighting strong growth momentum in its Indian business and expectations of margin improvement ahead. The company reported an 18% year-on-year rise in revenue for the first quarter, with Domino’s India like-for-like growth at 11.6%, outpacing its quick service restaurant peers.
The brokerage said the company remains focused on market penetration while maintaining limited price hikes, a strategy it believes will sustain healthy volume-led growth despite the high base of previous years. Management expects gross margins to improve as cost pressures ease, with top-line growth helping to support EBITDA margin expansion over time. Morgan Stanley sees Jubilant FoodWorks well positioned to capitalise on strong brand equity and consumer demand trends, reinforcing its positive stance on the stock.
Disclaimer: The views and recommendations made in this article are those of Morgan Stanley. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
