Art of Stock Investing by Manikandan Ramalingam

Author:Manikandan Ramalingam
Language: eng
Format: epub
Publisher: Notion Press
Published: 2020-05-22T00:00:00+00:00

Summary (Data as on Dec 2011)

Stock Price per Share: Rs 750

Market Cap: Rs 4,900 crores

Debt: 0

Cash and cash equivalents: Rs 9 crores

Profits in FY 2010, 2011: Rs 33 crores, 72 crores

Profit growth in FY 2011: 118%

Profit growth in last 1 year: 118%

Share Price Rise in last 2 years: 240%

Let’s analyze Jubilant FoodWorks with our 4 thumb rule.

Debt and cash equivalents of Jubilant FoodWorks

Jubilant FoodWorks is a zero debt company with nine crores cash in hand. It listed in secondary markets in 2010. So it’s only early days for the company. Their first priority will be to expand with more outlets. So, they will have minimal cash in hand as a result of that.

Brand value of Jubilant FoodWorks

Well, you may not have heart of the name Jubilant Foodworks. But, you definitely would have heard about Domino’s Pizza. It’s not just pizzas that they serve. You also get chicken popcorn, other side dishes and beverages (soft drinks). They also operate in Nepal, Sri Lanka, and Bangladesh.

Competition and future growth prospects for Jubilant FoodWorks

Their main competitor is Pizza Hut. But Domino’s and Pizza Hut operate in two different price ranges with Domino’s being the cheaper one. That will definitely suit well for expansion and growth in India. Pizza Hut is not a listed competitor and as far as I see, there are more Domino’s outlets than Pizza Hut.

Coming to future growth prospects, Dominos are mainly found only in cities as of now. I don’t think they have penetrated smaller cities yet. That leaves tons of space to expand to in India and other countries. All this could happen in the next 10 years.

Growth consistency of Jubilant FoodWorks

As said before, Jubilant gave IPO only recently and listed in stock exchange in early 2010. So, we don’t have financial data for the last five years. From the limited data we have, they have grown at an awesome pace so far.

Godrej Consumer Products Ltd

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