Motilal Oswal has given Buy recommendation for Jubilant Foodworks recommended buy rating on the stock with a target price of Rs 4830 in its research repo with a target price of Rs. 4830 in its research report issued on Sep 02, 2021

Motilal Oswal’s research report on Jubilant Foodworks

JUBI’s FY21 annual report highlights the management’s efforts to stay ahead of its peers and reap the tremendous opportunities in the Indian QSR space. Boosting its technological capabilities: In addition to its delivery and value moat, JUBI is boosting its technological moat to enhance its lead over its QSR peers and aggregators. Improving its pre-order experience, usage of Hindi and regional languages, and setting up of its analytics and insights division are some of the efforts on this front. Macro factors favoring delivery are extremely strong: Robust growth in urban and rural internet penetration is likely to be boosted further by the launch of 5G technology. Online ordering is growing strongly, even in smaller centers. As a result, delivery and takeaway (a clear focus area going forward) will be the key drivers of SSSG in the next few years, even when dine-in recovers. Sustainable sourcing and food safety is increasingly becoming a vital focus area to boost its long-term growth potential.

Outlook

We maintain our Buy rating on the stock with a TP of INR4,830 per share.

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