Discover the potential of Jubilant FoodWorks! Get in-depth trading and investment insights. Strong buy recommendation supported by solid fundamentals and positive technical signals. Take advantage of lucrative opportunities now
Jubilant FoodWorks Limited, trading on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) under the ticker symbol JUBLFOOD, stands tall as India’s premier foodservice giant, proudly affiliated with the esteemed Jubilant Bhartia Group. Since its inception in 1995, the company has been a trailblazer in the culinary realm, holding exclusive master franchise rights from Domino’s Pizza Inc. to oversee the development and operations of Domino’s Pizza outlets across the Indian subcontinent.
Table of Contents
About Jubilant FoodWorks
Jubilant FoodWorks Limited stands as India’s leading foodservice company under the Jubilant Bhartia Group. Established in 1995, it holds exclusive master franchise rights for Domino’s Pizza Inc. across India, Sri Lanka, Bangladesh, and Nepal. In February 2010 the Company got listed on Indian stock exchanges (NSE, BSE: JUBLFOOD). With a network spanning 1,760 Domino’s outlets in 387 Indian cities, and subsidiaries in Sri Lanka and Bangladesh boasting 47 and 13 restaurants respectively, Jubilant FoodWorks is a formidable presence.
Beyond Domino’s, it commands exclusive rights for Dunkin’ and Popeyes restaurants across India, Bangladesh, Nepal, and Bhutan, with 24 Dunkin’ outlets in 8 Indian cities and 12 Popeyes restaurants in Bengaluru. In 2019, it introduced ‘Hong’s Kitchen,’ its first owned-restaurant brand, specializing in Chinese cuisine, with 12 establishments across 4 cities.
Subsidiaries of Jubilant FoodWorks
- Jubilant Fresh Private Limited
- Jubilant Golden Harvest Limited
- Jaytee Private Limited
- Jubilant FoodWorks Netherlands B.V.
- Jubilant FoodWorks Lanka (Pvt.) Ltd
Share Holding Pattern of Jubilant FoodWorks
These figures represent significant actions taken by a company that directly influence shareholder value. They signify material changes within the company and have an impact on its stakeholders:
- Promoter Shareholding: 41.94%
- FII (Foreign Institutional Investor) Shareholding: 23.24%
- DII (Domestic Institutional Investor) Shareholding: 6.07%
- MF (Mutual Fund) Shareholding: 19.98%
- Public Shareholding: 8.77%
Jubilant FoodWorks, a leading entity in the food service industry, undergoes a thorough financial assessment to ascertain its operational efficiency and financial robustness. Let’s delve into the fundamental ratios spanning profitability, liquidity, solvency, efficiency, valuation, and growth dimensions to glean valuable insights:
Fundamental Analysis of Jubilant FoodWorks | ||||
Ratio | March 2023 | March 2022 | March 2021 | March 2020 |
Profitability Ratio | ||||
Gross Profit Margin | 58.24% | 77.48% | 55.04% | 66.75% |
Net Profit Margin | 6.99% | 10.10% | 7.14% | 7.08% |
Return on Equity (ROE) | 18.61% | 21.61% | 16.24% | 24.95% |
Liquidity Ratio | ||||
Current Ratio | 0.667 | 1.00 | 0.973 | 1.21 |
Quick Ratio (Acid-Test Ratio) | 0.494 | 0.828 | 0.819 | 1.07 |
Solvency Ratio | ||||
Debt to Equity Ratio | 0.207 | 0.164 | 0.106 | 0 |
Interest Coverage Ratio | 3.56 | 4.26 | 2.88 | 3.50 |
Efficient Ratio | ||||
Inventory Turnover Ratio | 12.74 | 6.73 | 12.93 | 15.20 |
Account Receivable Turnover Ratio | 203.16 | 199.37 | 170.50 | 153.05 |
Valuation Ratio | ||||
Price to earning Ratio (P/E) | 82.26 | 82.77 | 165.86 | 69.34 |
Price to Book Ratio (P/B) | 15.31 | 17.89 | 26.93 | 17.30 |
Growth Ratio | ||||
Earning per Share (EPS) Growth | 5.35 | 6.37 | 3.51 | 4.24 |
Revenue Growth | 5,145.70 | 4,371.76 | 3,339.25 | 3,954.60 |
Profitability Ratios
Gross Profit Margin:
The gross profit margin, a pivotal indicator of operational efficiency and pricing strategy effectiveness, witnessed a substantial decline from 77.48% in March 2022 to 58.24% in March 2023. This noteworthy drop suggests potential challenges in cost management and may prompt management to reevaluate production processes and pricing strategies to restore profitability levels.
March 2023 revealed a dip in net profit margin to 6.99% from 10.10% in March 2022. This downward trajectory signals a need for stringent cost control measures and operational optimization to mitigate the impact of rising expenses and sustain healthy profit margins.
Return on Equity (ROE):
While Jubilant FoodWorks maintains a respectable ROE, the slight decline from 21.61% in March 2022 to 18.61% in March 2023 may indicate less efficient asset utilization or an increased reliance on financial leverage to drive returns. Management should focus on enhancing operational efficiency and capital allocation strategies to bolster shareholder value.
Liquidity Ratios
Current Ratio:
The current ratio, reflecting the company’s ability to meet short-term obligations with its current assets, demonstrated a declining trend, reaching 0.667 in March 2023 from 1.00 in March 2022. This diminishing liquidity position warrants close monitoring and may necessitate proactive measures to enhance liquidity, such as optimizing working capital management or securing additional financing sources.
Quick Ratio (Acid-Test Ratio):
Similar to the current ratio, the quick ratio exhibited a downward trajectory, indicating potential challenges in promptly covering short-term liabilities without relying on inventory. Management should explore strategies to bolster cash reserves and reduce reliance on inventory to improve liquidity resilience.
Solvency Ratios
Debt to Equity Ratio:
The escalating trend in the debt to equity ratio, from 0.164 in March 2022 to 0.207 in March 2023, signals a growing reliance on debt financing relative to equity. While debt can be a strategic tool for growth, excessive leverage may heighten financial risks, necessitating prudent debt management and capital structure optimization.
Interest Coverage Ratio:
The interest coverage ratio, a measure of the company’s ability to service interest obligations with operating income, exhibited a declining trend. Management should prioritize improving earnings quality and operational efficiency to enhance interest coverage and mitigate financial risk exposure.
Efficiency Ratios
Inventory Turnover Ratio:
The inventory turnover ratio, indicating the efficiency of inventory management, fluctuated over the years, suggesting potential inefficiencies in inventory control and supply chain management. Streamlining inventory processes and enhancing demand forecasting accuracy can optimize working capital utilization and improve operational efficiency.
Account Receivable Turnover Ratio:
The increasing trend in the account receivable turnover ratio reflects effective credit management practices, contributing to improved cash flow and liquidity. Continued focus on enhancing receivables management can further bolster liquidity resilience and working capital efficiency.
Valuation Ratios
Price to Earnings Ratio (P/E):
With fluctuating P/E ratios, investor sentiment and expectations regarding future earnings potential vary. Management should communicate strategic initiatives and growth prospects effectively to align investor expectations and drive shareholder value.
Price to Book Ratio (P/B):
Fluctuations in the P/B ratio reflect changes in investor perceptions of intrinsic value relative to market price. Continued focus on delivering sustainable growth and maximizing shareholder value can influence investor sentiment positively.
Growth Ratios
Earning per Share (EPS) Growth:
Despite fluctuations, positive EPS growth underscores the company’s ability to generate earnings per share. Continued focus on operational efficiency and growth initiatives can sustain positive EPS growth trajectory and enhance shareholder value.
Revenue Growth:
Consistent revenue growth indicates Jubilant FoodWorks’ capacity to expand its top line and capture market opportunities. Management should capitalize on operational strengths and market dynamics to sustain revenue growth momentum and drive long-term value creation.
In conclusion, while Jubilant FoodWorks demonstrates strengths in profitability and growth, challenges in liquidity, solvency, and efficiency require proactive management attention. By implementing strategic initiatives to address these challenges and capitalize on growth opportunities, Jubilant FoodWorks can enhance its financial performance and unlock long-term shareholder value.
Technical Analysis of Jubilant FoodWorks
Technical analysis of Jubilant FoodWorks involves evaluating price movements and trading volumes to forecast future price movements. Technical analysis depends on charts and statistical indicators. analysts use various techniques, such as trend analysis, chart patterns, and technical indicators like moving averages or relative strength index (RSI), to identify potential buying or selling opportunities for Jubilant FoodWorks.
The main goal of technical analysis of Jubilant FoodWorks share price is to predict future price movements based on historical data and market psychology, helping investors make informed decisions about when to enter or exit trades. So, bellow we are explaining Various techniques as of 30th April 2024 for technical analysis of Jubilant FoodWorks.
Price action
Price action and price level of Jubilant FoodWorks (As of 30th April) | |||
Price action | Daily Timeframe | Weekly Timeframe | Monthly Timeframe |
Candlestick | Strong Bullish | Bullish | Tweezer Bottom |
Chart Pattern | Triangle Chart | Double Bottom | Falling Wedge |
Price Support Level | 436-440 | 416-424 | 415-420 |
Price Level | 463.20 is Current price | 52 weeks High 586.95 | 52 weeks low 421.05 |
As of April 30th, Jubilant FoodWorks’ price action and price levels provide valuable insights into its market sentiment and potential future movements across different timeframes.
Daily Candlestick:
Candlestick: A strong bullish candle accompanied by high trading volume indicates robust buying pressure and optimism among traders. This suggests that there’s significant bullish momentum in the short term, likely driven by positive market sentiment or fundamental developments surrounding Jubilant FoodWorks.
Chart Pattern: The presence of a Triangle Chart Pattern implies a period of consolidation and indecision among traders, characterized by narrowing price ranges and alternating periods of bullish and bearish sentiment. The strong breakout from this pattern suggests a potential continuation of the bullish trend, with traders likely to interpret this breakout as a signal to enter or add to long positions.
Price Support Level: The price support level of 436-440 acts as a critical area where buying interest is expected to emerge, preventing further downward movement. This support level indicates a strong zone of demand, suggesting that if the price were to decline towards this level, it may encounter significant buying pressure.
Weekly Candlestick:
Candlestick: On the weekly timeframe, a bullish candlestick with a strong breakout of an inside bar pattern suggests a continuation of the bullish momentum established in the daily timeframe. This breakout signals increased buying interest and reinforces the bullish bias among traders over the medium term.
Chart Pattern: The presence of a Double Bottom chart pattern indicates a potential trend reversal from bearish to bullish. This pattern typically forms after an extended downtrend and is characterized by two distinct troughs with a moderate peak in between. The breakout from this pattern suggests a shift in market sentiment from bearish to bullish, potentially leading to further upward price movement.
Price Support Level: 52 weeks low is acting as the price support level also in chart 416-424 serves as a significant area of demand where buyers are likely to step in, preventing further downside movement. This level indicates a zone of strong support, suggesting that any pullbacks towards this range may encounter buying pressure from market participants.
Monthly Candlestick:
Candlestick: A Tweezer Bottom candlestick pattern on the monthly timeframe indicates a potential reversal from a downtrend to an uptrend. This pattern forms when two consecutive candlesticks have equal or nearly equal lows, signalling a shift in market sentiment from bearish to bullish. The presence of this pattern suggests that Jubilant FoodWorks may experience a bullish reversal in the long term.
Chart Pattern: The Falling Wedge chart pattern on the monthly timeframe suggests a period of consolidation within a downtrend, characterized by narrowing price ranges and declining volume. This pattern typically resolves with a bullish breakout, indicating a potential reversal of the prevailing downtrend and the emergence of a new uptrend.
Price Support Level: 52 weeks low is acting as the price support level also in chart 415-420 acts as a crucial area of demand on the monthly timeframe, where buyers are likely to intervene and support the price in the event of a decline. This level indicates a strong zone of support, suggesting that any retracements towards this range may attract buying interest from investors looking to accumulate positions.
In summary, the analysis of Jubilant FoodWorks’ price action and price levels across different timeframes provides valuable insights into current market sentiment and potential future movements. Traders and investors can use this information to formulate informed trading strategies and make well-informed decisions based on the prevailing market dynamics. For more updates and analysis on Jubilant FoodWorks and other market trends, visit our website.
Indicators Use for Technical Analysis
Bolinger Band (BB):
Bolinger Band Price level in Jubilant FoodWorks (As of 30th April) | |||
| Upper Band | Median | Lower Band |
Bolinger Band | 461.51 | 449.35 | 430.19 |
As of April 30th, Jubilant FoodWorks’ Bollinger Bands indicate a median price of 449.35, flanked by an upper band at 461.51 and a lower band at 430.19. These bands represent dynamic price levels derived from statistical calculations, providing insight into potential price volatility and trend direction. The upper band acts as a resistance level, suggesting a potential ceiling for price movement, while the lower band serves as support, indicating a potential floor. Traders may interpret price movements relative to these bands to gauge potential buy or sell signals and assess overall market sentiment.
Moving Average (MA):
Moving Average price level in daily candlestick of Jubilant FoodWorks (As of 29th April) | ||
Moving Average | 100 Day | 200 Day |
Simple Moving Average (SMA) | 495.90 | 504.06 |
Exponential Moving Average (EMA) | 479.41 | 494.21 |
As of April 29th, Jubilant FoodWorks’ daily candlestick moving averages indicate a 100-day simple moving average (SMA) of 495.90 and a 200-day SMA of 504.06. Additionally, the exponential moving average (EMA) for the same periods stands at 479.41 and 494.21, respectively.
Data Analysis
Pivot Point support & Resistance of Future Price:
Expiry date | Current Price | Future Price | Pivot Point | Support 1 | Support 2 | Support 3 | Resistance 1 | Resistance 2 | Resistance 3 | Traded Lots |
30-May-24 | 463.20 | 464.80 | 458.75 | 448.05 | 431.30 | 420.60 | 475.50 | 486.20 | 502.95 | 11149 |
27-Jun-24 | 463.20 | 466.60 | 460.77 | 450.53 | 434.47 | 424.23 | 476.83 | 487.07 | 503.13 | 2068 |
Conclusion
The fundamental analysis highlights strengths in profitability and growth, albeit with challenges in liquidity and solvency that necessitate proactive management attention. Moreover, the technical analysis underscores favourable price action and support levels across various timeframes, indicating positive market sentiment and potential buying opportunities.
Considering the shareholder holding pattern and traded lots, there is substantial market participation and confidence in Jubilant FoodWorks, further bolstering its appeal to traders and investors alike. However, prudent risk management and ongoing monitoring of market dynamics are imperative to navigate potential uncertainties and optimize returns.
Jubilant FoodWorks presents a compelling opportunity for traders seeking short-term gains and investors looking for long-term growth potential. By leveraging its strengths, addressing key challenges, and capitalizing on market opportunities, Jubilant FoodWorks is poised to deliver value to stakeholders and sustain its trajectory of success in the dynamic food service industry.
FAQs
- What is Jubilant FoodWorks Limited?
Jubilant FoodWorks Limited is a leading foodservice company in India, operating under the esteemed Jubilant Bhartia Group. Established in 1995, it holds exclusive master franchise rights for Domino’s Pizza Inc. across India, Sri Lanka, Bangladesh, and Nepal.
- Where can I find the stock of Jubilant FoodWorks listed?
Jubilant FoodWorks Limited is listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) under the ticker symbol JUBLFOOD.
- What are the brands operated by Jubilant FoodWorks?
In addition to Domino’s Pizza, Jubilant FoodWorks operates Dunkin’ and Popeyes restaurants across multiple countries. It also introduced its own restaurant brand, Hong’s Kitchen, specializing in Chinese cuisine.
- What is the current shareholding pattern of Jubilant FoodWorks?
As of the latest data, the shareholding pattern includes Promoter Shareholding (41.94%), Foreign Institutional Investor (FII) Shareholding (23.24%), Domestic Institutional Investor (DII) Shareholding (6.07%), Mutual Fund (MF) Shareholding (19.98%), and Public Shareholding (8.77%).
- How can I invest in Jubilant FoodWorks?
To invest in Jubilant FoodWorks, you can open a brokerage account with a registered stockbroker and purchase shares of the company through the stock exchanges where it is listed.
- What factors should I consider before investing in Jubilant FoodWorks?
Before investing, it’s essential to conduct thorough research on the company’s financial performance, growth prospects, industry trends, and overall market conditions. Additionally, consider consulting with a financial advisor to assess your investment goals and risk tolerance.
- Where can I find more information about Jubilant FoodWorks?
You can visit the company’s official website, explore financial news websites, or refer to stock market research platforms for detailed information, financial reports, and analysis on Jubilant FoodWorks.
- What is the historical performance of Jubilant FoodWorks’ stock?
The historical performance of Jubilant FoodWorks’ stock can be assessed by reviewing its past price movements, dividend history, earnings per share (EPS) growth, and market trends. Additionally, analysing the company’s financial statements and quarterly reports can provide insights into its performance over time.
- Does Jubilant FoodWorks offer dividends to its shareholders?
Yes, Jubilant FoodWorks has a history of offering dividends to its shareholders. Dividend payouts are typically announced during the company’s annual general meetings (AGMs) and are subject to approval by the board of directors.
- What are the growth prospects for Jubilant FoodWorks?
Jubilant FoodWorks has promising growth prospects, driven by its strong brand portfolio, expansion strategies, and increasing consumer demand for quick-service restaurants. Factors such as population growth, urbanization, and rising disposable incomes further contribute to the company’s growth potential.
