InvestorQ : Why has Jubilant Food rallied to a new high in the market?
prachi Patwardhan made post

Why has Jubilant Food rallied to a new high in the market?

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sara Kunju answered.
4 months ago
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Jubilant Foodworks has rallied almost 35% in the last one month despite being a high priced stock to scale a new high of Rs.4,166. This is on the back of expected revival in the QSR business and a sharp spike in the same store growth sales or SSG sales in the latest quarter. In Jun-21 quarter, Jubilant saw net profits turn around to Rs.69 crore with EBITDA margins almost at a flat level of 24.1%.

Due to the low base of June 2020, the Jun-21 quarter saw revenues more than double to Rs.893 crore. Jubilant is currently a debt free company and that is a major advantage for growth in the QSR segment. Despite fairly rich valuations, the stock has continued to rally on the back of steeper valuation assigned to the Domino’s Pizza franchisee. It is the leader in QSR segment with robust supply chain management and solid ratings.

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