The stock opened 2 percent higher on today and extended gains to rise nearly 4 percent
Jubilant Foodworks
The share price of Jubilant Foodworks, which operates brands such as Domino’s Pizza, and Dunkin’ Donuts in India, rose more than 3 percent in the morning trade on December 23 after brokerage firm Morgan Stanley reportedly reiterated its “overweight” stance on the stock.
The research firm also raised the target price to Rs 5,000, implying an upside of 47 percent from the previous day’s close at Rs 3,429 on the BSE.
Morgan Stanley’s channel checks suggest that Domino’s India has raised prices by 5-6 percent on average across its portfolio recently, a report by Bloomberg Quint said. The price hikes are essential to, at least partly, offset the impact of high raw material inflation across key inputs, the brokerage said.
Catch all the live market action here
Jubilant Foodworks is in an opportune position to capitalise on the growth prospects for the organised food service industry in India, it said.
Innovation in product offerings, effective marketing strategy and aggressive store launch strategy are some of the upside risks to Morgan Stanley’s target, the brokerage said.
Downside risks include weak same-store-sales growth trends, competition from food aggregators and other players and a rise in cost inflation.
Check out all the buzzing stocks here
The stock opened 2 percent higher and extended gains to rise nearly 4 percent. It hit an intraday high of Rs 3,567 on the BSE. At 9.40 am, it was trading at Rs 3,560.
In a recent note, Motilal Oswal had said that Jubilant Foodworks was its top bet in the quick-service-restaurant space. It has a “buy” rating on the stock with a target of Rs 4,850.
