Jubilant FoodWorks Shares Soar 12% on Stellar Q4

Jubilant FoodWorks, the company that sells pizzas under the Domino's brand, jumped around 12 per cent on Friday after the company posted its strongest profit growth in nine quarters. Jubilant's Q4 numbers were much better than its competitors such as Yum! Brands, analysts said.
  Jubilant reported a net profit of Rs 31.5 crore on sales of Rs 542 crore in the March quarter, beating Street estimates. Analysts polled by NDTV expected Jubilant FoodWorks to post a profit of Rs 30.9 crore on sales of Rs 537 crore.
  Jubilant FoodWorks' SSS growth was at 6.6 per cent in the March quarter, much better than estimates of 2.5 per cent growth. The strong growth should come as a boost for the company, which has seen same-store sales and margins decline consistently over the past several quarters because of weakness in demand.
The company also surprised on the margin front. EBITDA margin for the March quarter came in at 12.9 per cent against estimate of 12.7 per cent.
The company announced a maiden dividend of Rs 2.50 per share. Brokers upbeat
A string of brokerages upgraded Jubilant FoodWorks' target price after a stellar quarter. Credit Suisse revised its target from Rs 1,500 to Rs 1,820; CLSA upped its target from Rs 1,850 to Rs 2,000, while Goldman Sachs revised its target from Rs 1,689 to Rs 1,801.
Market analyst Ambareesh Baliga told NDTV that Jubilant has posted strong numbers after a long time, but investors should wait for a quarter or two to see if the performance can be sustained. March quarter outperformance is based on lower input costs, but the impact of competition and discounts should also be factored in, he added.