Jubilant Foodworks: More gains ahead for the stock

The strong performance in Q3 and cost efficiencies have led to revision of operating profit estimates and target prices

Jubilant Foodworks gained 19 per cent in two trading sessions after a strong performance in the December quarter and expectation of a strong earnings growth trajectory. The biggest trigger for the stock was the 17.8 per cent same-store sales growth, the highest in nearly five years. This was way above the 10 per cent growth that most analysts had estimated. 

With the company indicating a flat industry growth, it means that Jubilant is gaining market share at the expense of unorganised players post the implementation of the goods and services tax. Given higher value proposition for its products, this too