Jubilant Foodworks Ltd: Q4FY12 Result Update

SummaryWe increase our target price on the stock to Rs885 per share in view of the management revising its store additions in FY13E to 90 from the earlier 85. The new store addition guidance should result in a higher than estimated EPS.

However, the valuations appear rich given:

  • The recent run up in the stock over the last six months,
  • Lower SSS growth expectations in the future,
  • Lower average sales per store, and
  • Lower scope of margin improvement.

Consequently we revise our rating to SELL with a target price of Rs885 per share.



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