Jubilant FoodWorks slips on MSCI exclusion

Jubilant FoodWorks fell 2.24% to Rs 1,202.95 at 11:47 IST on BSE as index provider MSCI excluded the stock from its small cap indices.

Meanwhile, the BSE Sensex was up 162.14 points, or 0.78%, to 20,875.51.

On BSE, so far 7,515 shares were traded in the counter, compared with an average volume of 34,405 shares in the past one quarter.

The stock hit a high of Rs 1,211.90 and a low of Rs 1,185.50 so far during the day. The stock hit a 52-week high of Rs 1,389.95 on 5 November 2013. The stock hit a 52-week low of Rs 928 on 18 June 2013.

The stock had underperformed the market over the past one month till 9 January 2014, sliding 8.73% compared with the Sensex's 2.87% fall. The scrip had, however, outperformed the market in past one quarter, rising 7.61% as against Sensex's 2.29% rise.

The mid-cap company has an equity capital of Rs 65.43 crore. Face value per share is Rs 10.

Shares of Jubilant FoodWorks will be excluded from the MSCI global small cap indices effective on Tuesday, 14 January 2014, MSCI said in a statement late on Thursday, 9 January 2014.

Shares of Jubilant FoodWorks fell 3.01% to Rs 1,230.50 on Thursday, 9 January 2014 after the central bank on Wednesday, 8 January 2014, restricted foreign institutional investors from buying additional shares in the company as their shareholding has reached the limit.

The Reserve Bank of India (RBI) notified that the aggregate net purchases of equity shares in Jubilant FoodWorks by foreign institutional investors (FIIs) in primary/secondary markets under portfolio investment scheme (PIS) have reached the trigger limit. Hence, further purchases of equity shares of this company would be allowed only after obtaining prior approval of the RBI, the central bank said in a statement.

Currently, FIIs are allowed to invest upto 49% of the paid-up capital of Jubilant FoodWorks under the PIS.

As at 30 September 2013, FIIs held 45.35% stake in Jubilant FoodWorks.

Net profit of Jubilant Foodworks rose 2.77% to Rs 33.24 crore on 27.65% rise in net sales to Rs 436.60 crore in Q2 September 2013 over Q2 September 2012.

Jubilant FoodWorks (JFL) is part of Jubilant Bhartia group and India's largest food service company, with a network of 650 Domino's Pizza restaurants (as of 31 October 2013) across 137 cities. JFL & its subsidiary operate Domino's Pizza brand with the exclusive rights for India, Sri Lanka, Bangladesh and Nepal. The Company is the market leader in the organized pizza market with a 67% market share in India (as per Euro monitor report 2013). The Company also has exclusive rights for developing and operating Dunkin' Donuts restaurants for India and has launched 21 Dunkin' Donuts restaurants in India (as of 12 December, 2013).

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