JUBLFOOD - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 3.7

📊 Core Financials & Profitability

Profit Growth: PAT improved from ₹49.5 Cr to ₹66.7 Cr — a 29.5% jump, signaling a rebound in profitability.

Return Metrics

ROE: 9.82% and ROCE: 11.0% — moderate, not exceptional for a consumer-facing brand.

EPS: ₹3.17 — relatively low for a ₹626 stock, indicating stretched valuation.

Debt Profile: Debt-to-equity at 1.31 — high for a retail business, suggesting aggressive expansion or lease liabilities.

Dividend Yield: 0.19% — minimal, consistent with reinvestment strategy.

💸 Valuation Indicators

Metric Value Insight

P/E Ratio 182 Extremely high vs. industry PE of 157 — richly valued.

P/B Ratio ~18.2 Very expensive relative to book value ₹34.4.

PEG Ratio -8.62 Negative PEG suggests earnings contraction or unreliable growth forecast.

🔍 Conclusion: Valuation is highly stretched. The stock is priced for perfection, with little margin for error.

🍕 Business Model & Competitive Edge

Core Operations: Jubilant FoodWorks operates Domino’s, Dunkin’, Popeyes, Hong’s Kitchen, and COFFY across India and select international markets.

Competitive Advantage

Market leader in QSR (Quick Service Restaurants) with deep delivery infrastructure.

Strong brand recall and tech-enabled ordering ecosystem.

Growth Outlook

Analysts forecast an average price target of ₹703–₹717, implying ~11–14% upside from current levels

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.

ROCE has remained steady at ~12% over five years, with capital deployed growing 142%

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— a sign of consistent reinvestment.

📉 Technicals & Entry Zone

RSI: 40.1 — approaching oversold territory.

MACD: -3.62 — bearish momentum.

DMA Levels: Price below both 50-DMA and 200-DMA — short-term weakness.

📌 Suggested Entry Zone: ₹600–₹615 — near support levels and technical lows.

🕰️ Long-Term Holding Guidance

Hold if Invested: Brand strength and QSR dominance support long-term potential.

Buy on Dips: Prefer entry below ₹615, especially if RSI drops below 38.

Monitor: Margin trends, debt levels, and expansion into new formats or geographies.

Let me know if you'd like a peer comparison with Devyani International or Westlife Foodworld next.

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simplywall.st

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