⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
JUBLFOOD - Fundamental Analysis: Financial Health & Valuation
Last Updated Time : 05 Nov 25, 7:43 am
Back to Fundamental ListFundamental Rating: 3.1
📊 Financial Overview
- Profitability: PAT improved QoQ from ₹49.5 Cr to ₹66.7 Cr, a 29.5% increase, showing operational recovery.
- Return Metrics: ROE at 9.82% and ROCE at 11.0% are modest, reflecting average capital efficiency.
- Valuation: P/E of 174 is extremely high, even though below industry average of 485, indicating overvaluation.
- P/B Ratio: With a book value of ₹34.4 and price of ₹599, P/B is ~17.4, suggesting a steep premium.
- PEG Ratio: -8.24 signals earnings contraction and poor growth-adjusted valuation.
- Debt Profile: Debt-to-equity ratio of 1.31 is elevated, raising leverage concerns.
- Momentum: RSI at 53.7 and MACD at -5.17 suggest neutral to slightly bearish sentiment.
🏢 Business Model & Competitive Edge
- Jubilant FoodWorks operates Domino’s Pizza and Dunkin’ brands in India, with strong brand recall and market leadership.
- Its tech-enabled delivery infrastructure and pan-India presence offer scale advantages.
- Focus on menu innovation and digital ordering enhances customer engagement and operational efficiency.
💡 Entry Zone Recommendation
- Current price is below DMA 50 and DMA 200, indicating a downtrend.
- Suggested Entry Zone: ₹570–₹590 for accumulation on dips.
- Long-term holding viable if valuation cools and earnings growth sustains.
✅ Positive
- Strong QoQ PAT growth (+29.5%) shows operational improvement.
- Dominant market position in quick-service restaurant (QSR) segment.
- DII holdings increased by 0.74%, reflecting domestic investor confidence.
⚠️ Limitation
- Extremely high P/E and P/B ratios suggest overvaluation.
- Negative PEG ratio and elevated debt-to-equity ratio (1.31) raise caution.
- ROE and ROCE are average for a consumer-facing business.
📉 Company Negative News
- FII holdings declined by 0.94%, indicating reduced foreign interest.
- MACD and volume trends suggest weak short-term momentum.
📈 Company Positive News
- Improved profitability and strong brand performance in QSR segment.
- Digital ordering and delivery infrastructure continue to drive growth.
🏭 Industry
- QSR industry benefits from urbanization, rising disposable income, and digital adoption.
- Industry P/E of 485 reflects high growth expectations and premium valuations.
🧾 Conclusion
- Jubilant FoodWorks is a market leader with strong brand equity but currently trades at a steep valuation.
- Entry near ₹570–₹590 offers better risk-reward for long-term investors.
- Monitor debt levels and earnings consistency for sustained upside.
NIFTY 50 - Today Top Fundamental Picks Stock Picks
NEXT 50 - Today Top Fundamental Picks Stock Picks
MIDCAP - Today Top Fundamental Picks Stock Picks
SMALLCAP - Today Top Fundamental Picks Stock Picks