jubilant food share price analysis || Multibagger Stock for the next 5 years



Multibagger Stock for the next 5 years || jubilant food share price analysis

In today's article, we will talk about such stocks which have the potential to give 5x returns in the coming 5 years.
The company we are going to tell about is from the Quick Service Restaurant Industry.

● QSR Sector - Quick Service Restaurant Sector
Talking about the market of this Quick Service Restaurant, there has been an annual compound growth of 23% of this market, if we talk about the market size, then the QSR is about 300 billion rupees, but it is being estimated by the market experts that by 2025 this market is 900 billion. Rs and will go up to 1500 billion by 2027.
There is still immense potential of QSR market in India, so QSR market companies have a lot of potential that can grow significantly in the coming years.

● Jubilant Food Works
Today the name of the stock we are talking about is Jubilant Food Works, it is the QRS market leader and the fundamentals and margins of this company are so good that it is a premium valuation company.
Also this company has India franchise rights of two master international brands.

◆ Dunkin Donuts
◆ Domino's Pizza



●Why are investors behind this stock?
This company is India's largest food services company, nowadays this company is trading at 25% discount from its recent high and if there is more consolidation in the market then it can also be found on the lower side, due to this the trend of investors. are on the side of this stock and investors are accumulating this share.

● Jubilant Food works Dominating Band Domino's
Its dominating brand in the QSR industry is Domino's. If you see its position in the India market, then Dominos account for 44% of the top 5 QSRs in India.
This means that this company is the QSR market leader according to its market share, as well as looking at the pizza food in the Quick Service Restaurant Market, then Dominos is a monopoly company because if you ask random people pizza, then the name of Domino's will come first in their mind.

● Strong Market Competitor
Along with this, you know that there has been a boom in the QSR market due to the arrival of apps like Zomato and Swiggy in the market, while these apps provide food to the people at a discount but do not depend on apps like Jubilant Food Works, Zomato and Swiggy. He has made his own app and there it provides food at more discount than these companies. Also, this app has been downloaded more than 10 million times in Google Playstore.

● Pricing Power Buisness
Warren Buffett says that the company which has the pricing power, they always grow and make their investors rich.
Dominos is such a powerful business that it is an inflation proof buisness if inflation increases then accordingly it also increases its cost and can pass this on to its customers and this pricing power is very strong because in last 6 months Domino's has increased its cost. The rates of products have been increased by 6 to 7 percent. Even after increasing the price, there is no effect in the sales of Domino's because it has a strong brand value.



If you see the sales of Jubilant Food Works, since March 2017 sales are increasing continuously in the company, since March 2021 till now there has been a growth of 24.3%.
If you ignore the impact of Covid on the resturant industry, then you will see that the company is making incredible sales growth. If you look at the profit of Jubilant Food Works, then from March 2021 till now, the company has made an incredible profit growth of 80% in its profit.
At the same time, from March 2021 till now, the company has made an Operating Profit Margin Growth of 25%.




If you see the ROE of this company means Return on Equity, then it is 18%, while the ROE of 3 years is 23% which is very good.
Apart from this, if we look at the debt of Jubilant Food Works, it is 1720 crores and the cash reserve is 429 crores.
According to the cash reserve, the debt of the company is high but the company will manage it easily.



If you tell the company's shareholding pattern, Promoters hold 41.94% and Mutual Funds hold 9.41%, Domestic Investors hold 1.45%, and Foreign Institution holds about 41.41% holding, Retailers hold 5%. Therefore, the demand for this share remains.

For today, in this share, tell us how you liked this article by commenting and comment to know about other such shares.

Post a Comment (0)
Previous Post Next Post