Target: ₹700
Current Market Price (CMP): ₹613.85
Jubilant FoodWorks (JUBI) recently engaged with management to explore industry trends, growth prospects, and the company’s profitability outlook.
The demand for JUBI’s offerings has remained stable but has yet to exhibit significant improvement. Management anticipates a resurgence in demand starting in the third quarter of FY26, largely due to upcoming GST reforms. Notably, the company’s participation in major sales events such as Big Billion Days suggests a positive trend in consumer spending. According to management, the relief provided by GST 2.0 is expected to enhance disposable incomes, thereby benefiting discretionary sectors such as Quick Service Restaurants (QSR). JUBI emphasizes that substantial underlying demand exists, and a strategic mix of location, pricing, and value will be crucial for unlocking growth, particularly in rural areas.
JUBI has significantly benefited from an increase in traffic within its delivery segment, which is projected to outperform competitors in the near future. The company’s focus on acquiring new customers and increasing order frequency is contributing to robust growth in delivery services. Initiatives around value offerings and product innovation are expected to further bolster order growth in FY26.
While the assessment of the business franchise remains positive, concerns over elevated valuations lead to a reaffirmation of a Neutral rating on the stock, with a target price set at ₹700.
Published on October 7, 2025
