QSR (quick service restaurant) company, Jubilant Foodworks, a large-cap company in the fast-moving consumer goods (FMCG) industry has fixed July 11 as the record date. It is a subsidiary of the Jubilant Bhartia Group and is India’s largest food business company, with franchise business arrangements for three global brands: Domino’s Pizza, Dunkin’ Donuts, and Popeyes.
“This is in further to our letter dated May 30, 2022, wherein it was informed that the Board of Directors of Jubilant FoodWorks Limited in its meeting held on May 30, 2022, had inter-alia recommended Dividend for FY 2021-22 subject to the approval of shareholders in the ensuing Annual General Meeting (“AGM”). Pursuant to the Regulation 42 of Listing Regulations, the Company has fixed Monday, July 11, 2022, as the Record Date for the purpose of determining the names of Members eligible for a Dividend of Rs 1.20/- (i.e. 60 per cent) per equity share of the face value of Rs. 2/- each for the Financial Year 2021-22. The dividend upon approval by the shareholders will be paid/dispatched within 30 days from the date of AGM and also subject to deduction of tax at source,” the company said in a BSE filing.
Stock Price History
Its stock price has significantly underperformed both sector and market indices in the past year. The stock trades at a 12-month forward PE of 55.2 times compared to the BSE Consumer Discretionary Goods and BSE Sensex, which trade at 28.9 times and 17.8 times, respectively.
In the previous year, the stock has fallen 23.50 per cent, and year-to-date (YTD) so far in 2022, the stock has fallen 32.00 per cent. In the last 6 months, the stock has fallen 27.17 per cent but in the last 1 month the stock has moved up by 2.39 per cent and in the last 5 trading days the stock has fallen 3.75 per cent. On the NSE, Jubilant Foodworks shares reached a 52-week high of Rs 918.00 on October 18, 2021, and a 52-week low of Rs 451.20 on May 12, 2022, indicating that the stock is currently trading at a discount of 45 per cent from its 52-week high and above 10.15 per cent from its 52-week low. Jubilant Food is trading below the 5-day, 20-day, 50-day, 100-day, and 200-day moving averages based on today’s closing price.
Should You Invest?
ICICI Direct has given a ‘Sell’ tag to the stock in the range of Rs 495 – Rs 498 Target Rs 430 and StopLoss Rs 531.1. Over the past six months, Jubilant Foodworks has been under consistent delivery-based selling pressure. The open interest in the stock which has risen sharply in the recent recovery has started declining suggesting long liquidation. The current open interest in the stock is still elevated and the closure of positions may trigger further downsides. Moreover, aggressive Call writing is visible near ATM strikes. As the stock has moved below its major Put base of 500, a fresh sell-off is likely in the stock in coming sessions.
The stock closed at Rs 497 in today’s trading session, up 1.31 per cent from its previous closing of Rs 490.55.