Morgan Stanley has maintained its ‘Overweight’ rating on Jubilant FoodWorks, setting a target price of ₹781 per share, implying a 23.4% upside potential from the current market price of ₹633.00.
Despite a subdued demand environment, the brokerage notes that management remains confident about growth and expects a gradual recovery in gross margins over the coming quarters.
One of the key highlights from the report is that delivery’s share of total revenue has reached an all-time high of 71.4%, reflecting the company’s strong positioning in the online food delivery segment. However, margins were below expectations, as lower gross margins offset savings in employee and other operating expenses.
Morgan Stanley’s bullish outlook is based on Jubilant FoodWorks’ efforts to rebuild profitability, sustain revenue growth, and optimize cost structures, which could drive long-term value for investors.
Disclaimer: The above article is for informational purposes only and does not constitute financial advice. Investors are advised to consult their financial advisors before making any investment decisions.
