Jubilant Foodworks – Ship to Steady this Year

  • Date: 05th June 2020
  • CMP: Rs 1,688
  • Mid Cap with Mkt Cap Rs 22,000 crores
  • Industry: Quick Service Restaurant (QSR)
  • Advice: HOLD. Buy if it falls below Rs 1,400

jainmatrix investments, jubilant foodworks

summary

  • Overview: Jubilant Foodworks is India’s leading Quick Service Restaurant chain which operates Domino’s Pizza and Dunkin’ Donuts chains in India. FY20 revenues and profits were ₹3,927 crores and ₹279 crores The Revenues, EBITDA & PAT have grown by 15.7%, 20.9% and 11.4% CAGR resp. over 7 years.
  • What’s Good: 1) A new management team since 2017 has revived and improved the firm, growing the pizza chain, making the donuts chain profitable, launching a Chinese food segment and put focus on Same Store Sales Growth 2) The balance sheet looks strong with low debt and good free cash flow. 3) The pizza options have become innovative and more reasonably priced. 4) Valuations are at historical averages 5) Even during lockdown, home delivery business did not suffer much. 5) An upside risk is a V shaped recovery for QSR in FY21
  • Key risks: 1) FY21 will be weak due to Covid lockdown and restrictions on restaurants. Also the consumers will take time to recover their eating out habits. 2) JFL can be affected by consumption and economic cycles 3) Higher Competition 4) Promoter stake reduction plan.
  • Advice: HOLD the share for a target price of ₹1,997 by May 2022, a gain of 18% over 2 years. BUY if it falls below Rs 1,400.

The entire report in PDF form is available hereJainMatrix Investments_Jubilant FoodWorks_May2020 

Disclaimer and Explanation

This document has been prepared by JainMatrix Investments Bangalore (JM), and is meant for use by the recipient only as information and is not for circulation. This document is not to be reported or copied or made available to others without prior permission of JM. It should not be considered or taken as an offer to sell or a solicitation to buy or sell any security. The information contained in this report has been obtained from sources that are considered to be reliable. However, JM has not independently verified the accuracy or completeness of the same Punit Jain has a small (<0.01%) holding in Jubilant Foodworks Ltd. since March 2020. Neither JM nor any of its affiliates, its directors or its employees accepts any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for any omission therein. Recipients of this report should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well. The suitability or otherwise of any investments will depend upon the recipient’s particular circumstances and, in case of doubt, advice should be sought from an Investment Advisor. Punit Jain is a registered Research Analyst under SEBI (Research Analysts) Regulations, 2014. JM has been publishing equity research reports since Nov 2012. Any questions should be directed to the director of JM at punit.jain@jainmatrix.com.

Café Coffee Day IPO – Very Hot Coffee

  • Date 10th Oct 2015
  • Mid Cap – Rs 4,979 cr Mkt Cap
  • Industry – Coffee QSR, conglomerate
  • Price range: Rs. 316-328 and Period:  14-16th Oct 2015
  • Advice: Average offering with medium to high risks. 

Summary

  • Overview: Coffee Day Enterprises is a conglomerate into coffee, logistics, hospitality, financial services and technology parks. The “Café Coffee Day” brand and chain is a valuable asset.
  • The CCD chain is a network of 1,538 café outlets in 209 cities with a 46% market share. The coffee business is integrated from plantation to processing, retail and exports.
  • Revenue and EBITDA have grown 29.7% and 25% CAGR over 5 years. But losses were Rs 87.2 cr. in FY15. The firm is debt heavy. Profitability appears to be 2-5 years away.
  • Opinion: The CCD IPO is rated Average as it carries medium to high risks and is only appropriate for investors with patience and a minimum 3 year investment perspective.

Download/ read the entire report.

JainMatrix Investments_Cafe Coffee Day_Oct2015

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Disclaimer

This document has been prepared by JainMatrix Investments Bangalore (JM), and is meant for use by the recipient only as information and is not for circulation. This document is not to be reported or copied or made available to others without prior permission of JM. It should not be considered or taken as an offer to sell or a solicitation to buy or sell any security. The information contained in this report has been obtained from sources that are considered to be reliable. However, JM has not independently verified the accuracy or completeness of the same. JM has no known financial interests in CCD or any related firm. Neither JM nor any of its affiliates, its directors or its employees accepts any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for any omission therein. Recipients of this report should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well. The suitability or otherwise of any investments will depend upon the recipient’s particular circumstances and, in case of doubt, advice should be sought from an independent expert/advisor. Either JM or its affiliates or its directors or its employees or its representatives or its clients or their relatives may have position(s), make market, act as principal or engage in transactions of securities of companies referred to in this report and they may have used the research material prior to publication. Any questions should be directed to the director of JainMatrix Investments at punit.jain@jainmatrix.com