You all may have heard about this food company. Be it a festival or a break-up, Pizza always helps. Fortunately, When we talk about the pizza we have only a few companies to look at. Frankly, I’m more of a pasta fan Anyway.
Here, I was talking about DOMINOS. Yes, it is one of the favourite food companies. It is listed in the market as JUBILANT FOODWORKS. Jubilant Foodworks’ share price right now is Rs 449 a share as on 25-04-2023.
That’s why we think this stock can be added to the portfolio. Let’s look at the stock technically first. Along with many reasons to buy, this is one of the reasons.
It seems the stock is at the Support. Hence, out of many reasons, this course is a reason to buy. What is support? you ask
What is support?
In technical analysis, support and resistance are two fundamental ideas. Reading pricing charts correctly requires an understanding of both the meaning of these terms and how they are used in real-world situations.
Because of supply and demand, prices fluctuate. Prices increase when supply is insufficient to meet demand. Prices decrease as supply outpaces demand. When supply and demand are equal and prices are stable, prices will occasionally fluctuate sideways.
So, typically, support is the Demand zone. Traders and investors tend to buy or accumulate at this price.
Furthermore, the stock is at its 50% discount from its ATH ( All time high). Thus, could be a good time to accumulate. Ahhh, Damn, i just want to eat a pizza now.
Let’s, look at the fundamentals of Jubilant Foodworks.
Profit & Loss
Consolidated Figures in Rs. Crores / View Standalone
| Mar 2011 | Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales + | 678 | 1,019 | 1,414 | 1,736 | 2,093 | 2,438 | 2,583 | 3,018 | 3,563 | 3,927 | 3,312 | 4,396 | 5,064 |
| Expenses + | 558 | 828 | 1,171 | 1,486 | 1,836 | 2,173 | 2,339 | 2,576 | 2,961 | 3,045 | 2,532 | 3,290 | 3,900 |
| Operating Profit | 120 | 191 | 243 | 250 | 256 | 265 | 245 | 442 | 603 | 883 | 780 | 1,106 | 1,164 |
| OPM % | 18% | 19% | 17% | 14% | 12% | 11% | 9% | 15% | 17% | 22% | 24% | 25% | 23% |
| Other Income + | 1 | -1 | 6 | 9 | 6 | 10 | -1 | 21 | 44 | 38 | 64 | 26 | 59 |
| Interest | 0 | -0 | 0 | -0 | -0 | -0 | -0 | -0 | -0 | 165 | 163 | 176 | 194 |
| Depreciation | 29 | 38 | 56 | 79 | 101 | 128 | 155 | 160 | 157 | 352 | 375 | 393 | 460 |
| Profit before tax | 92 | 152 | 194 | 180 | 161 | 147 | 88 | 303 | 490 | 403 | 306 | 563 | 569 |
| Tax % | 22% | 32% | 32% | 34% | 31% | 34% | 35% | 35% | 35% | 31% | 25% | 26% | |
| Net Profit | 72 | 103 | 131 | 118 | 111 | 97 | 58 | 196 | 318 | 279 | 231 | 418 | 420 |
| EPS in Rs | 1.11 | 1.59 | 2.01 | 1.81 | 1.69 | 1.47 | 0.88 | 2.97 | 4.85 | 4.24 | 3.51 | 6.37 | 6.39 |
| Dividend Payout % | -0% | -0% | -0% | -0% | 15% | 17% | 29% | 17% | 21% | 28% | 34% | 19% |
Conclusion
Overall the company is a buying zone. However, this is not investment advice, this is merely for educational purposes. One should consult with your financial advisor.
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