Jubilant FoodWorks Share Price Plummets Over 5% After Q2 Earnings Report

Jubilant FoodWorks Share Price Plummets Over 5% After Q2 Earnings Report

VoM News Desk | October 26, 2023 | 12:09 PM IST | Breaking News | Follow on Google News

Jubilant FoodWorks Share Price Plummets Over 5% After Q2 Earnings Report

Jubilant FoodWorks Share Price Plummets Over 5% After Q2 Earnings Report

The Bearish Slide: Jubilant FoodWorks saw its share price plummet by over 5% on Thursday, October 26, following the release of its September quarter earnings. The stock opened at ₹511, a significant drop from the previous close of ₹528.40, and eventually reached ₹499.55. By 9:30 am, it was trading 5.07% lower at ₹501.60 on the BSE.

A Challenging Year for Jubilant Food Stock

Jubilant Food stock has struggled over the past year, recording a decline of over 15%. In contrast, the benchmark Sensex has managed to achieve a 6% gain during the same period.

Q2 Results and Market Reaction

After market hours on Wednesday, October 25, Jubilant FoodWorks, the company behind Domino’s Pizza franchises, Dunkin’ restaurants, and Popeyes restaurants in India, reported a 39.5% year-on-year fall in standalone profit after tax (PAT), amounting to ₹72.1 crore for Q2FY24. This was a sharp drop from the profit of ₹119.2 crore in the same quarter of the previous financial year. The PAT margin for the quarter stood at 5.4%. However, the company reported a 4.5% YoY increase in revenue from operations, reaching ₹1,344.8 crore, with a gross profit of ₹1,027.5 crore. The EBITDA came in at ₹280.7 crore, and the EBITDA margin was 20.9%. The company also revealed that it had opened 60 new stores in India, bringing the total store count to 1,949 across all brands.

Brokerage Firms Weigh In

Following the Q2 earnings report, several brokerage firms have revised their estimates for Jubilant FoodWorks. Motilal Oswal Financial Services maintains a “buy” recommendation on the stock with a target price of ₹610, suggesting a 15% upside potential. On the other hand, Nirmal Bang advises investors to “accumulate” the stock with a target price of ₹520. However, Nuvama Wealth Management downgraded the stock to a “hold” and set the target price at ₹541. Emkay Global Financial Services maintains a “sell” call on the stock with a reduced target price of ₹380.

Market Outlook and Long-Term Prospects

Despite the recent challenges, some analysts remain optimistic about Jubilant FoodWorks’ long-term prospects. They anticipate improved performance in the second half of FY24 due to the festive season, ongoing events like the World Cup, and a more favorable base ahead. However, there are concerns regarding demand and elevated material costs.

The market’s reaction to Jubilant FoodWorks’ Q2 results reflects a mix of views and expectations, and it remains to be seen how the company will navigate these challenges in the coming quarters.

Disclaimer: The opinions and suggestions provided in this article are those of individual analysts and do not reflect the viewpoints of VoM News. We encourage investors to consult with certified experts before making any investment choices.

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VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.