JUBLFOOD - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.8
| Stock Code | JUBLFOOD | Market Cap | 32,458 Cr. | Current Price | 492 ₹ | High / Low | 761 ₹ |
| Stock P/E | 136 | Book Value | 35.0 ₹ | Dividend Yield | 0.24 % | ROCE | 11.0 % |
| ROE | 9.82 % | Face Value | 2.00 ₹ | DMA 50 | 544 ₹ | DMA 200 | 603 ₹ |
| Chg in FII Hold | -1.52 % | Chg in DII Hold | 1.73 % | PAT Qtr | 64.0 Cr. | PAT Prev Qtr | 66.7 Cr. |
| RSI | 29.8 | MACD | -18.7 | Volume | 8,50,190 | Avg Vol 1Wk | 19,13,770 |
| Low price | 481 ₹ | High price | 761 ₹ | PEG Ratio | -6.43 | Debt to equity | 1.32 |
| 52w Index | 4.01 % | Qtr Profit Var | 22.8 % | EPS | 3.35 ₹ | Industry PE | 108 |
📊 Financials: JUBLFOOD shows weak fundamentals with ROCE at 11.0% and ROE at 9.82%, reflecting modest capital efficiency. Debt-to-equity ratio of 1.32 indicates a leveraged balance sheet. Quarterly PAT declined slightly from 66.7 Cr. to 64.0 Cr., though profit variation stands at 22.8%, showing some operational improvement. EPS of 3.35 ₹ is low relative to market cap, limiting shareholder value creation. Cash flows remain under pressure due to high debt and thin margins.
💹 Valuation: Current P/E of 136 is extremely high compared to the industry average of 108, suggesting severe overvaluation. P/B ratio is ~14.1 (Current Price / Book Value), which is steep. PEG ratio of -6.43 highlights poor growth prospects relative to valuation. Intrinsic value appears much lower than CMP, offering little margin of safety.
🏢 Business Model & Competitive Advantage: JUBLFOOD operates in the quick-service restaurant (QSR) sector, primarily through Domino’s Pizza in India. Competitive strengths include brand dominance, wide distribution, and strong customer loyalty. However, high debt, modest return ratios, and stretched valuations reduce its competitive edge compared to peers with leaner operations.
🎯 Entry Zone Recommendation: Current price of 492 ₹ is near its 52-week low of 481 ₹, reflecting weakness. A more attractive entry zone would be around 450–470 ₹, offering better risk-reward. Long-term investors should accumulate cautiously, given stretched valuations and weak profitability trends.
Positive
- Strong brand presence in QSR sector with Domino’s dominance.
- DII holdings increased by 1.73%, showing domestic institutional support.
- Quarterly profit variation (+22.8%) indicates operational resilience.
- High consumer loyalty and wide distribution network.
Limitation
- Extremely high P/E of 136 compared to industry average (108).
- Weak ROCE (11.0%) and ROE (9.82%) indicate modest efficiency.
- EPS of 3.35 ₹ is very low relative to market cap.
- Debt-to-equity ratio of 1.32 adds financial risk.
Company Negative News
- FII holdings decreased by 1.52%, reflecting reduced foreign investor confidence.
- Quarterly PAT decline from 66.7 Cr. to 64.0 Cr. highlights earnings pressure.
Company Positive News
- DII inflows (+1.73%) suggest strong domestic support.
- Operational resilience with profit variation of 22.8%.
- Strong consumer demand in QSR sector supports long-term relevance.
Industry
- QSR industry P/E at 108 reflects high growth expectations.
- Sector growth driven by urbanization, rising disposable incomes, and changing food habits.
- Expansion of delivery platforms supports long-term demand.
Conclusion
⚖️ JUBLFOOD is fundamentally weak with low return ratios, high debt, and stretched valuations. Despite strong brand presence and consumer loyalty, the stock trades at unsustainable multiples. Investors should avoid fresh entry at current levels and consider accumulation only near 450–470 ₹ for better margin of safety. Long-term holding carries risk unless profitability improves significantly and valuations normalize.
I can also contrast JUBLFOOD’s valuation against other QSR peers like Devyani International or Westlife Foodworld to highlight relative positioning if you’d like.