Amid heavy competition, can Jubilant sustain trend after a strong Q2?

Heavy competition from online food channels to weigh on margins

The stock of Jubilant FoodWorks was trading up 4.4 per cent on Wednesday, on anticipation of better-than-expected numbers for the September quarter (Q2), as seen earlier. However, even as the frim delivered in-line results, investors seem disappointed as the stock fell 2.5 per cent in intra-day trade before closing 0.5 per cent down at Rs 1,193.

Led by a strong 20.5 per cent same store sales (SSS) growth, Jubilant clocked 21.3 per cent YoY rise in net sales to Rs 8.8 billion and net profit increased 60 per cent to Rs 777 million. The Street was anticipating the topline at