Jubilant FoodWorks hits new high ahead of 1:1 bonus

Jubilant FoodWorks hit a new high of Rs 2,796, up 1%, extending its past two days 3% gain on the BSE, ahead of record date for 1:1 bonus issue. The stock will turn ex-bonus on Thursday, June 21, 2018.

The Capital Issue Committee has fixed Saturday, June 23, 2018 as the record date, for the purpose of determining the list of equity shareholders who will be entitled for issue and allotment of bonus equity shares in the proportion of 1 equity share of Rs 10 each for every 1 equity share of Rs 10 each of the Company.

In past one month, Jubilant FoodWorks has outperformed the market by gaining 12% as compared to 2% rise in the S&P BSE Sensex. Thus far in the current calendar year 2018, the stock zoomed 59% against 5% gain in the benchmark index.

Analysts at Prabhudas Lilladher retained ‘accumulate’ rating on Jubilant FoodWorks with 18-month target price of Rs 2,870.

“Strong SSS (same store growth) and low base in 1HFY18 should drive strong growth for Jubilant FoodWorks, however we expect growth rates to taper off in FY20 as the impact of two consecutive years of low store openings shows on sales,” the brokerage firm said Q4FY18 results.

Analysts at Equirus Securities reiterate ‘ADD’ rating on the stock with a Jun’19 target price of Rs 2,738.

“We believe that around 10% volume growth seems achievable for the company in the coming years. SSSg would be aided by price hikes taken during 3QFY18, which should be more than company-level inflation and thus aid margins. Further, Dunkin' Donuts breakeven will also lead to margin improvement,” the brokerage firm said in a report.