Domino's India operator Jubliant Foodworks reports a near tripling of quarterly profit from last year and strong revenue growth also driving gains in its shares.
** Jubilant Foodworks JUBI.NS jumps 8.3% to 621.2 rupees after Q2 results, set for best one day pct rise in 15 months, if gains hold
** Revenue jumps nearly 20% and like for like growth of ~9% outperforms industry
MARGIN EXPANSION A 'KEY INVESTOR CONCERN'
** Emkay Global (maintains 'buy' and PT of 825 rupees) says slow margin expansion has been a key concern for investors despite industry-leading topline growth
** Ambit Capital (maintains 'sell'; PT marginally higher at 580 rupees) says delivering margin expansion would be difficult without impacting growth momentum, adding it sees "downside risk" to margin guidance
** Antique Stock Broking (maintains 'hold'; cuts PT to 600 rupees from 670 rupees) says profitability will see moderate expansion as cheaper offerings dominate, and price hikes remain limited
** Adds, optimism about recovery in performance already factored into valuation
** JUBI rated 'buy' on averge by 29 analysts; median PT at 715 rupees
** JUBI down ~14.5% YTD
(Reporting by Ananta Agarwal in Bengaluru)
((Ananta.Agarwal@thomsonreuters.com))
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