JUBLFOOD - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.3
| Stock Code | JUBLFOOD | Market Cap | 28,753 Cr. | Current Price | 436 ₹ | High / Low | 720 ₹ |
| Stock P/E | 106 | Book Value | 36.4 ₹ | Dividend Yield | 0.27 % | ROCE | 11.8 % |
| ROE | 11.6 % | Face Value | 2.00 ₹ | DMA 50 | 471 ₹ | DMA 200 | 537 ₹ |
| Chg in FII Hold | -1.30 % | Chg in DII Hold | 1.59 % | PAT Qtr | 53.8 Cr. | PAT Prev Qtr | 67.1 Cr. |
| RSI | 39.7 | MACD | -5.11 | Volume | 64,81,487 | Avg Vol 1Wk | 68,49,783 |
| Low price | 409 ₹ | High price | 720 ₹ | PEG Ratio | -8.82 | Debt to equity | 1.38 |
| 52w Index | 8.67 % | Qtr Profit Var | -2.79 % | EPS | 3.44 ₹ | Industry PE | 69.1 |
📊 Core Financials: Jubilant FoodWorks (JUBLFOOD) shows weak-to-moderate fundamentals. ROCE at 11.8% and ROE at 11.6% reflect average capital efficiency. Debt-to-equity ratio of 1.38 indicates high leverage. Quarterly PAT of ₹53.8 Cr. declined from ₹67.1 Cr., showing earnings pressure. EPS of ₹3.44 is very low relative to price levels, limiting profitability strength.
💰 Valuation Indicators: Current P/E of 106 is far above the industry average of 69.1, suggesting significant overvaluation. P/B ratio of ~12.0 (436/36.4) reflects premium pricing. PEG ratio of -8.82 indicates negative growth prospects. Dividend yield of 0.27% provides negligible income return. Intrinsic value appears much lower than current price, requiring caution.
🏢 Business Model & Competitive Advantage: Jubilant FoodWorks operates Domino’s Pizza and other QSR brands in India. Its competitive advantage lies in brand recognition, scale, and distribution network. However, profitability remains inconsistent, and high debt combined with stretched valuations limit financial flexibility.
📈 Entry Zone: RSI at 39.7 suggests oversold conditions, while MACD negative indicates weakness. Current price of ₹436 is below DMA levels (50 DMA: ₹471, 200 DMA: ₹537). Entry between ₹410–₹430 may be favorable for long-term investors with high risk tolerance.
⏳ Long-Term Holding Guidance: Jubilant FoodWorks benefits from strong brand presence and QSR demand but faces challenges from expensive valuations, high debt, and weak earnings. Suitable only for aggressive investors willing to accumulate cautiously near support levels.
Positive
- 🌟 Strong brand presence through Domino’s Pizza
- 🌟 Increase in DII holding (+1.59%)
- 🌟 RSI at 39.7 indicates oversold conditions
Limitation
- ⚠️ Very high P/E (106) compared to industry average (69.1)
- ⚠️ PEG ratio of -8.82 indicates negative growth prospects
- ⚠️ High debt-to-equity ratio (1.38)
- ⚠️ EPS of ₹3.44 is weak
- ⚠️ Dividend yield of 0.27% is negligible
Company Negative News
- 📉 Decline in quarterly profits (₹67.1 Cr. → ₹53.8 Cr.)
- 📉 Reduction in FII holding (-1.30%)
Company Positive News
- 📈 Increase in DII holding (+1.59%)
- 📈 Oversold RSI suggests potential rebound
Industry
- 🌐 Quick Service Restaurant (QSR) industry driven by urban demand and convenience
- 🌐 Industry P/E at 69.1 reflects high valuations
- 🌐 Competition from peers like McDonald’s India, Burger King, and Pizza Hut
Conclusion
✅ Jubilant FoodWorks shows weak fundamentals with high debt and expensive valuations but benefits from strong brand presence. Entry between ₹410–₹430 is suitable only for aggressive investors. Long-term holding requires caution, as profitability remains weak and valuations are stretched compared to peers.
Would you like me to also compare Jubilant FoodWorks with peers like Burger King India, McDonald’s India, or Pizza Hut India to highlight sector positioning?