Jubilant FoodWorks Conviction Intact, Maintain ACCUMULATE ::Emkay

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Jubilant FoodWorks

Conviction Intact, Maintain ACCUMULATE

ACCUMULATE

CMP: Rs 708                                        Target Price: Rs 725

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n     Q4FY11 performance marginally below expectations – APAT at Rs193 mn v/s expectation of Rs205 mn - led by lower then expected Ebidta margins (17%)

n     Does not reduce our conviction on leverage and scalability of Dominos model, build 110 bps expansion in Ebidta margins in FY11-13E period from 17.7% in FY11 to 18.8% in FY13E

n     JFL targets to add 80 new stores in FY12- 11% higher then 72 stores in FY11 – also expects continued momentum in same-store-sales growth

n     Upgrade FY12E and FY13E earnings by 6.4% and 10.3% to Rs16.1/Share and Rs23.4/Share - Maintain ‘ACCUMULATE’ rating with price target of Rs725/Share