
UBS has maintained a ‘Sell’ rating on Jubilant FoodWorks with a target price of ₹600, warning that the stock’s recent rally may be overdone despite a fundamentally strong Q4.
The company posted a 93% YoY rise in net profit to ₹49.5 crore and a 19.1% increase in revenue to ₹1,587 crore. However, EBITDA margin contracted 126 basis points to 18.5% due to a 30% surge in staff costs and a 22% increase in other expenses.
UBS noted that while adjusted PAT rose 29% YoY, the reported PAT declined 76%, likely due to one-offs. The brokerage believes that in the midst of a sector down-cycle, the stock’s current valuation leaves little room for upside, making a case for profit booking.
Disclaimer: This article is based on the brokerage report by UBS. It does not constitute investment advice.
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