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On Thursday, Citi analysts, led by Ashish Kanodia, increased the price target for Jubilant FoodWorks Ltd (JUBI:IN) to INR805.00 from the previous INR750.00. The firm continues to recommend a Buy rating on the stock. The analysts noted Jubilant FoodWorks’ impressive operational performance, which has persisted despite unchanging consumer sentiment. The company reported a 12.1% growth in like-for-like (LFL) sales, with delivery LFL sales rising by 21.9%, driven by a 33.5% increase in delivery order growth. These gains were attributed to several successful initiatives, including delivery fee waivers, accelerated product innovation, and marketing investments.
While dine-in sales have remained stagnant year-over-year, Citi expects the company’s recent efforts to sustain its LFL growth, outperforming other quick-service restaurant (QSR) players. Looking ahead, Jubilant FoodWorks’ management has set ambitious targets for the fiscal year 2026, planning to add 250 Domino’s and 30 Popeyes stores in India, following a net increase of 184 Domino’s and 19 Popeyes in fiscal year 2025.
In terms of profitability, the management anticipates an improvement in EBITDA margin by at least 200 basis points over the next three years. Citi’s positive outlook is further bolstered by an increase in their EBITDA estimates for fiscal years 2026-2027 by up to 5%, and the analysts have rolled forward their Sum of the Parts (SoTP) valuation to March 2027 from December 2026.
The analysts concluded that Jubilant FoodWorks remains their preferred choice within the QSR coverage. This preference is based on the company’s consistent LFL growth, which surpasses other QSR players, and the growth potential of the Popeyes brand. The reiterated Buy rating and revised price target of INR805 reflect Citi’s confidence in the company’s continued success.
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