)
Indians may be busy queuing up at Domino's Pizza counters and putting buying orders for their favourite combo offers; the same stands true with the large foreign investors who are riding relentlessly on India's consumption story.
The obsession can well be gauged from the fact that Foreign Institutional Investors (FIIs) are letting no opportunity go in vain to buy Jubilant Foodworks' stocks (company which operates the retail chain of Domino's Pizza in the country).
Amazingly, for last 11 quarters in a row FIIs are only buying on the counter, irrespective of the apprehension being flagged off by various market participants that the rally on the counter is overdone.
Consider this: After shares of Jubilant Foodworks were listed in February, 2010, barring one quarter (April-June, 2010), all the quarters till date have seen FIIs' raising their interest in the company. According to the statistics available from the BSE, foreign institutions' holding in the company has almost doubled since its listing from 21.09% to 41.63%.
Ironincally, at a time when domestic institutions have completed vacated the counter with an abysmal holding of 20 basis points (one bps is hundredth of a percentage point), their foreign counterparts seen no reason to leave the counter.
Moreover, company's quarterly profits have improved since its listing to Rs 37.7 crore in the quarter ended December, 2012 against Rs 10.4 crore in March quarter of 2010 - the period when company's shares hit stock markets first.
It is interesting to note that on its debut day, Jubilant Foodworks had given a return of 58% against its offer price of Rs 145 a share. And the rally which had once catapulted to as high as Rs 1,400, raised expectations whether it will overcome its US parent company Domino's Pizza Inc in terms of market capitalisation.
Jubilant FoodWorks is part of Jubilant Bhartia Group. The company and its subsidiary operates Domino’s Pizza brand with the exclusive rights for India, Nepal, Bangladesh and Sri Lanka. As on 31 December, 2012, it had a network of 552 Domino’s Pizza Stores, controlling 62% share in country's pizza market.
On BSE, shares of the company were trading weak at Rs 1,075.2, down Rs 34, or 3%, at 10:51 am.
| Table : Showing FIIs holding | |
| Quarter | Holding (%) |
| Mar, 13 | 41.63 |
| Dec, 12 | 40.8 |
| Sep, 12 | 39.58 |
| Jun, 12 | 38.17 |
| Mar, 12 | 37.89 |
| Dec, 11 | 35.9 |
| Sep, 11 | 35.84 |
| Jun, 11 | 33.44 |
| Mar, 11 | 24.55 |
| Dec, 10 | 21.09 |
| Sep, 10 | 20.82 |
| Jun, 10 | 17.39 |
| Mar, 10 | 21.09 |
