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Jubilant FoodWorks corrects on profit booking

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Capital Market
Last Updated : Jun 27 2014 | 11:57 PM IST

Jubilant FoodWorks fell 1.78% to Rs 1,294.10 at 15:05 IST on BSE on profit booking after the stock jumped 10.44% in the preceding six trading sessions to Rs 1,317.55 on 26 June 2014, from a recent low of Rs 1,193 on 18 June 2014.

Meanwhile, the BSE Sensex was up 30.50 points, or 0.12%, to 25,093.17.

On BSE, so far 7,071 shares were traded in the counter, compared with an average volume of 52,250 shares in the past one quarter.

The stock hit a high of Rs 1,326 and a low of Rs 1,287 so far during the day. The stock hit a 52-week high of Rs 1,389.95 on 5 November 2013. The stock hit a 52-week low of Rs 938.60 on 30 April 2014.

The stock had outperformed the market over the past one month till 26 June 2014, rising 16.64% compared with 1.40% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 27.92% as against Sensex's 13.43% rise.

The mid-cap company has an equity capital of Rs 65.44 crore. Face value per share is Rs 10.

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The recent rally in Jubilant Foodworks shares was triggered by a foreign brokerage upgrading the stock to buy with a target price of Rs 1,500 per share. The brokerage said if SSS (Same Store Sales) will grow by 5% then it would result in 14% higher earnings for Jubilant Foodworks and urban recovery will lead to higher SSS sales. High valuation of the stock is justified given strong revenue, the brokerage added.

Jubilant FoodWorks' net profit declined 23.72% to Rs 24.95 crore on 18.57% growth in total income to Rs 436.08 crore in Q4 March 2014 over Q4 March 2013.

Jubilant FoodWorks is part of Jubilant Bhartia group and India's largest food service company, with a network of 749 Domino's Pizza restaurants across 152 cities (as of 19 May 2014). The company & its subsidiary have the exclusive rights to develop and operate Domino's Pizza brand in India, Sri Lanka, Bangladesh and Nepal. At present it operates in India and Sri Lanka. The company is the market leader in the organized pizza market with a 67% market share in India (as per latest Euro monitor report). The company also has exclusive rights for developing and operating Dunkin Donuts restaurants for India and has launched 29 Dunkin Donuts restaurants across 10 cities in India (as of 19 May 2014).

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First Published: Jun 27 2014 | 3:03 PM IST

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