Domino's operator upgraded to 'Buy'; Antique raises target post Q3 update

Antique Stock Broking upgraded Jubilant FoodWorks' rating and target price after the company reported a jump in revenue from operations for the third quarter of the current financial year (Q3FY26). 

 

Jubilant FoodWorks' consolidated revenue from operations rose 13.4 per cent year-on-year (Y-o-Y) to ₹2438.7 million, while standalone revenue increased 11.8 per cent to ₹1801.5 crore.

 

On a like-for-like basis, Domino’s India posted a growth of 5.0 per cent, while Domino’s Turkey recorded a like-for-like growth of 6.3 per cent after accounting for Ind AS 29 adjustments. During the quarter, the company added a net 114 stores across its network, taking the total store count to 3,594 at the end of the period.

Analyst upgrades stock, target price

Antique Stock Broking said near-term profitability at Jubilant FoodWorks could improve despite the rising focus on value offerings, aided by goods and services tax reductions and operating leverage. Antique upgraded Jubilant FoodWorks to a buy from its earlier rating, and raised the target price to ₹620 from ₹600, citing favourable valuations and sustained outperformance in the quick-service restaurant segment.

 

The brokerage said a 5 per cent like-for-like growth was a strong outperformance in the quick-service restaurant space, especially against a high base of 12.5 per cent and weak demand conditions. 

 

Factoring in operating leverage and the impact of goods and services tax reduction in the second half of FY25-26, Antique raised its pre-Ind AS Ebitda estimate for FY25–26 by 14 per cent. Estimates for FY26-27 and 27-28 were also increased by 7 per cent and 1 per cent, respectively.

 

Further, reduction of GST on input costs is likely to improve gross margins during 2H, in addition to calibrated price hikes in select products, Antique said. "Despite the rising saliency of value offerings, we believe there is scope for margin expansion, through operating leverage."  CATCH STOCK MARKET LIVE UPDATES TODAY

Jubilant FoodWorks share price history

The restaurant operator's stock rose as much as 1.77 per cent during the day to ₹556.1 per share. The stock pared gains to trade 0.6 per cent lower at ₹543.3 apiece, compared to a 0.16 per cent advance in Nifty 50 as of 10:02 AM. 

 

Shares of the company are down 3 per cent this year so far. The counter has fallen 28 per cent this year, compared to a 10.5 per cent advance in the benchmark Nifty 50. Jubilant FoodWorks has a total market capitalisation of ₹35,823.00 crore. 

 

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