Analysts Predict Up to 33% Rebound for Jubilant FoodWorks Amid QSR Market Challenges

Original: Jubilant Food vs Devyani: This QSR stock can rebound upto 33%, says analyst

Business Standard•Apr 7, 20264 min

In a Nutshell

Analysts suggest that Jubilant FoodWorks and Devyani International stocks, both of which have seen significant declines, could rebound by up to 33%. Despite facing inflation pressures and stiff competition, Jubilant FoodWorks may reach ₹520-₹575, while Devyani International could target ₹109-₹119 in the near term.

Key Points

01Jubilant FoodWorks stock has fallen 46.2% from its peak of ₹795.
02Devyani International has seen a 58.9% decline from its high of ₹223.
03Analysts expect a potential upside of 33.4% for Jubilant FoodWorks.
04Devyani International may rally towards ₹109-₹119 in the short-to-medium term.
05Inflation and competition are expected to pressure margins for both companies.

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Full Summary

Jubilant FoodWorks and Devyani International, owners of popular Quick-Service-Restaurant (QSR) brands like Domino's and Pizza Hut in India, have experienced significant stock declines of 46.2% and 58.9%, respectively. Currently, Jubilant FoodWorks trades at ₹432, down from its peak of ₹795 in January 2024, while Devyani International is at ₹98, down from ₹223 in September 2024. Analysts predict a potential rebound for Jubilant FoodWorks, projecting its stock could rise to ₹520-₹575, representing a 33.4% increase from current levels. Similarly, Devyani International is expected to reach ₹109-₹119. Despite these optimistic projections, Kranthi Bathini, an Equity Strategist at WealthMills Securities, warns that inflation and increasing competition may continue to pressure margins and earnings for both companies in the short-to-medium term.

Key Figures

₹795

Peak stock price of Jubilant FoodWorks

₹223

Peak stock price of Devyani International

₹520-₹575

Projected stock price range for Jubilant FoodWorks

₹109-₹119

Projected stock price range for Devyani International

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Why It Matters

Investors in Jubilant FoodWorks and Devyani International could see significant returns if the stocks rebound as predicted. However, rising inflation may affect their disposable income and spending at these QSR outlets.

Who is affected

Investors and consumers of QSR brands like Domino's and Pizza Hut.

What to know

Investors should monitor market trends and consider consulting financial experts before making investment decisions.

FAQ

Jubilant FoodWorks is currently priced at ₹432, while Devyani International is at ₹98.

Inflation and high competition in the market are putting pressure on the margins and earnings of both companies.

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