Sharekhan has given Buy recommendation for Jubilant Foodworks with a target price of Rs. 3380 in its research report issued on Feb 22, 2021

Sharekhan’s research report on Jubilant Foodworks

Jubilant Foodworks (JFL), through the recently-formed subsidiary in Netherlands, acquired a 32.8% stake in DP Eurasia NV, the exclusive franchisee of Domino’s Pizza brand in Turkey, Russia, Azerbaijan and Georgia. JFL to pay Rs. 250 crore for 32.8% in DP Eurasia; deal valued at 0.5x its CY2020 sales of Rs. 1,635 crore; DP Eurasia operates the Domino’s brand in four countries through 770 stores (Delivery to Dine-in mix 75:25). JFL’s domestic business hit pre-COVID levels in Q3; but recent rise in COVID cases remains a key risk to sales in the near term.