1 year ago
Emkay Upgrades Jubilant FoodWorks on Strong Financials
Emkay Global, a financial company, thinks Jubilant FoodWorks, the company that runs Domino's in India, is doing well.
They upgraded the stock, meaning they think it's a good investment.
Jubilant's sales and profits grew a lot in the first three months of the year, especially in India.
Domino's sales also increased, with more people ordering delivery.
The company's international business, like in Turkey, also made more money than expected.
Jubilant is opening many new stores, and they have a plan to open even more in the future.
This is good news for the company and investors.
Emkay Global upgraded Jubilant FoodWorks stock to Buy, citing strong Q1 performance.
Jubilant FoodWorks saw 18% year-on-year revenue growth and 22% EBITDA growth in Q1 FY26.
Domino's India revenue grew 17.7%, with delivery revenue up nearly 25%.
International business posted a profit of ₹276 million, exceeding expectations.
The company added 71 new outlets in Q1 and plans to open over 1,000 stores in the next three years.
- Who
- Emkay Global and Jubilant FoodWorks.
- What
- Emkay Global upgraded Jubilant FoodWorks stock to 'Buy'.
- Where
- India, Turkey, Bangladesh, and Sri Lanka.
- When
- The upgrade was based on Q1 FY26 performance.
- Why
- Due to strong financial performance and growth outlook.
Emkay Global View
N/A
Margin Dip
Emkay Global View
Gross margins temporarily dipped due to new product launches, expected to recover.
N/A
N/A
Key facts
- Stock Upgrade
- Buy
- Target Price
- Rs 825
- Q1 FY26 Revenue Growth
- 18%
- Q1 FY26 EBITDA Growth
- 22%
- Domino's India Revenue Growth
- 17.7%
- New Outlets Added in Q1
- 71
Quotes
Emkay Global
The brokerage firm
“We upgrade JUBI to BUY (from Add) with unchanged TP of Rs825 (34x Jun-27 EBITDA), as we believe the recent correction was unwarranted in light of the Q1 revenue/EBITDA growth of 18%/22% in the India business and significant outperformance vs peers. Most peers (excl RBA) have seen EBITDA being flat or decline in Q1. ”
republicworld.com
“JUBI also expects gross margin to start inching up with select price hikes and supply-chain efficiencies, as it sees the Q1 gross-margin dip (down by 200bps) as an aberration, given that it was impacted by better-than-expected traction in some of the dilutive new launches (Big-Big-Pizza/Chicken sides)”
republicworld.com
Sources
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