Motilal Oswal cuts Jubilant FoodWorks target to Rs 500, stays Neutral after soft Q4
Delivery momentum holds but dine-in weakness, commodity, LPG and labor costs squeeze margins. Broker pegs FY26-28 revenue CAGR at 13% with Ebitda margin band of 12.5-13.0% and LFL growth of 5-7%, valuing India at 25x and international at 10x EV/Ebitda.
Motilal Oswal cuts Jubilant FoodWorks target to Rs 500, maintains Neutral after soft Q4. Delivery growth strong but dine-in weak; commodity, LPG and labor costs pressure margins. Estimates 13% revenue CAGR FY26-28.
Why this matters
Second target cut for Jubilant FoodWorks after an earlier reduction to Rs 600 citing Domino's price hike pressure. Follows a mixed Q4 print where profit jumped 67% to Rs 82 cr but margin worries persist.
Retail-company signal flow steady at 770 signals over the last 90 days.