Phillip Capital maintains neutral on Jubilant FoodWorks, target price Rs 1,445

INSUBCONTINENT EXCLUSIVE:
Phillip Capital has maintained neutral rating on Jubilant FoodWorks in the long term with a target price of Rs 1,445
Shares of Jubilant FoodWorks ended up 0.2% at Rs 1,684.55 on Friday while BSE Sensex closed 162.03 points up at 41,464.61
Company FinancialsFor the quarter ended 30-09-2019, the company has reported a Consolidated sales of Rs 998.05 Crore, up 5.16 % from last
quarter Sales of Rs 949.11 Crore and up 12.17 % from last year same quarter Sales of Rs 889.79 Crore Company has reported net profit after
tax of Rs 72.98 Crore in latest quarter
The company’s top management includes Mr.Arun Seth, Ms.Aashti Bhartia, Mr.Vishal Marwaha, Mr.Shyam S Bhartia, Mr.Shamit Bhartia,
Mr.Pratik Pota, Mr.Phiroz Vandrevala, Mr.Hari S Bhartia, Mr.Berjis Minoo Desai, Ms.Ramni Nirula
Company has Deloitte Haskins - Sells LLP as its auditors
As on 30-09-2019, the company has a total of 131,969,040 shares outstanding
Investment RationaleThe brokerage expects same store sales growth to accelerate to 5.5-5.6% in Q3 of FY20 compared to 4.5% in the first
half of the financial year due to lower discounting from food aggregators
Fourth quarter SSSG (same store sales growth) will look optically higher due to the leap year phenomenon; there will be one more incremental
day in 2020, as it is a leap year and this will add 1% SSSG to the Q4.