Analyst Sees Shares Of Domino's India Operator Going Up 35%
Take Stock Of The Week Ahead

Get all the latest Share Market trends and news to set you up for the week ahead.

Congratulations!
You have successfully subscribed.

Shares of Jubilant FoodWorks have slumped around 26% in the last six months but analysts at ICICI Securities expect the fast food retailer to spell a turnaround with its new launches.

The Jubilant FoodWorks Analyst: The Manoj Menon-led team at ICICI Securities maintained its ‘buy’ rating for the stock with a target price of ₹630 – around a 37% increase from the stock’s last closing price of ₹461.30.

The Jubilant FoodWorks Thesis: The brokerage firm sees the company’s expansion of the Popeyes store because of its cajun flavour offerings that are unique in India’s quick service restaurant segment (QSR). The firm expects that the store has a high probability of consumer acceptance. The analysts expect the company to add over 100 stores in FY24.

See Also: If You Skipped Dinner-Date And Invested The Money In Barbeque Nation Shares On Wednesday, Here’s How Much You’d Have Now

However, the analysts highlighted that the expansion of Popeyes will hamper KFC‘s market share to an extent but feels that the market may eventually expand to accommodate both brands. The firm also cited a 2014 research to state that more than 70% of Indians eat non-vegetarian food.

The firm however noted that the key risks facing the company are inflation in raw material cost and an increase in competitive intensity.

Price Action: Shares of Jubilant FoodWorks were up 0.95% to close at ₹461.30 on Thursday.

Read Next: Why This Nestle Analyst Is Unimpressed With 66% Jump In Q3 Profits

Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.

Comments
Loading...
Fast FoodICICI SecuritiesJubilant FoodWorksKFCPopeyes ChickenQSR