JUBLFOOD - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.0

Here’s a full-flavor analysis of Jubilant FoodWorks (JUBLFOOD) — the master franchisee of Domino’s India, but facing a valuation indigestion 🍕📉

📊 Core Financials Breakdown

Profitability & Returns

ROE: 10.7%, ROCE: 12.9% — moderate returns; not stellar for a high-growth consumer company.

EPS: ₹3.19 — quite low given the high market price.

Debt Load

Debt-to-equity: 2.08 — on the heavier side. Leverage could be risky in a consumer slowdown or rate hike cycle.

Earnings Movement

PAT: ₹48.8 Cr. vs ₹51.3 Cr. last quarter — small decline of -3.91%. Revenue stagnation may be pressuring margins.

Dividend Yield: 0.18% — nominal; not a yield play.

💸 Valuation Indicators

Metric Value Insight

P/E Ratio 189 🛑 Extremely expensive — even for consumer discretionary

P/B Ratio ~20.47 Market pricing in brand, not book value

PEG Ratio -9.93 ⚠️ Indicates contraction or unreliable growth estimates

📌 Valuation Summary: JUBLFOOD looks fundamentally stretched. The current price is based more on brand value and investor sentiment than earnings strength.

🍽️ Business Model & Competitive Position

Master franchise for Domino’s, Dunkin’, and now Popeyes — a strong QSR (Quick Service Restaurant) portfolio.

Massive reach, tech-led delivery systems, and loyalty programs provide scale advantage.

Faces heat from Zomato, Swiggy, cloud kitchens, and cost pressures from raw materials.

Despite strong brand awareness, growth is slowing — evident in the latest quarterly dip.

FII Holding ↑0.51%, DII ↑1.29% — suggests optimism from institutional investors.

📍 Technical Setup & Entry Guidance

Current Price: ₹653

Below DMA-50 (₹681) and DMA-200 (₹662) — short-term bearish.

RSI: 36.1 — approaching oversold zone.

MACD: -10.5 — bearish momentum dominant.

📌 Suggested Entry Zone

Accumulation range: ₹615–₹645, especially if RSI dips below 35 and stabilizes.

Watch for bottoming signs near ₹600, with resistance at ₹690.

🕰️ Long-Term Holding Outlook

Suitable for patient, brand-loyal investors betting on India’s QSR expansion.

However, the valuation risk is substantial — price must justify earnings growth.

Ideal only for a 5+ year horizon, with intermittent volatility expected.

You could also explore diversified consumer plays like Nestle India, Varun Beverages, or Westlife Foodworld for broader QSR or FMCG exposure. Want to compare any of those? 🍦📈

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