In a research report, the broking firm Motilal Oswal said that it valued Jubilant Foodworks at 55 times its price-to-earnings ratio, which includes India’s Domino’s business as well. But, as the DP Eurasia was delisted and a separate classification was available for international profit, the brokerage changed the valuation method.
At present, the brokerage values the firm’s India business at 55 times its price-to-earnings ratio while the international business at 35 times its price-to-earnings ratio for the financial year 2026.
The brokerage firm has kept the rating and target price unchanged. It has a target price of Rs 480 per share and a rating of “Neutral” on the stock as it expects the company’s “India business recovery will be more critical for the stock’s performance.”
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Jubilant Foodworks has a presence in Bangladesh and Turkey and it also increased its stake in both businesses to nearly 100%. In 2021, the fast-food giant acquired a 33% stake in DP Eurasia, and in the Bangladesh business, it raised its stake from 51% to 100%.
Another brokerage firm Prabhudas Lilladher said that currency devaluation is a big risk due to the continuous fall in Turkish currency. Whereas Bangladesh business presents a good opportunity for expanding its footprint in international markets. It also believes that India business is under pressure due to low demand in the Pizza segment and increased competition.
However, brokerage firm Prabhudas kept the rating unchanged to “Hold” on the stock of Jubilant Foodworks. “We shall incorporate the numbers of DP Eurasia on getting more clarity on numbers. Rough estimates suggest that International business will add ~Rs1.5 to the consol EPS, with Turkey being the main contributor. The stock currently trades at 52.7xFY26 standalone EPS,” said Prabhudas.
