Jubilant Foodworks Ltd

CMP: 763

Jubilant Foodworks Limited owns and operates fast food chains. Jubilant FoodWorks Limited, a Jubilant Bhartia Group Company holds the Master Franchisee Rights for Domino’s Pizza for India, Nepal, Sri Lanka and Bangladesh.

Jubilant Foodworks is a strong mid-cap and is well on its way to become a large-cap within the decade. Its currently trading at a very high P/E of 58 for its unique presence in fast food sector and growth potentials. Minimal liability. Revenues have grown from 424 Crores in FY10 to 678 Crores in FY11. Profits have more than doubled from 33 Crores in FY10 to 72 Crores in FY11. NPM has risen from less than 8% to close to 11% in just a year which is significant rise. Buy, accumulate on dips and hold for long term gains.