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Jubilant FoodWorks closes 3% lower after Credit Suisse downgrades stock to underperform

Jubilant FoodWorks share price fell up to 5.63% or 81 points to Rs 1,367 today compared to the previous close of Rs 1,448.55 on BSE.

twitter-logo BusinessToday.In        Last Updated: September 26, 2019  | 16:33 IST
Jubilant FoodWorks closes lower after Credit Suisse downgrades stock to underperform
Jubilant FoodWorks share price fell up to 5.63% or 81 points to Rs 1,367 today compared to the previous close of Rs 1,448.55 on BSE.

Jubilant FoodWorks share closed lower in trade today after global brokerage Credit Suisse lowered the ratings of the Mumbai-based firm. Jubilant FoodWorks share price fell up to 5.63% or 81 points to Rs 1,367 today compared to the previous close of Rs 1,448.55 on BSE.

The stock has lost 3.64% during the last two days and opened 2.87% lower at Rs 1,407 today. Jubilant FoodWorks share price closed 2.94% or 42.55 points lower at Rs 1406 on BSE.

The stock has risen 11.68% since the beginning of this year and gained 8.35% in last one year. Credit Suisse downgraded the stock to underperform from neutral and also cut target price to Rs 1,200 per share.

The brokerage also cut the same store sales growth of the firm to 4.5% for FY' 20 and expects 100 bps fall in the earnings before interest, tax, depreciation and amortization (EBITDA) margin.

Quick service restaurant industry-which has the strongest correlation of its growth with the macroeconomic conditions in India, is likely to see same-store-sales growth further decelerate in the second half of the current financial year. Consumption growth remains weak and the large cut in corporate tax rates does not address the current consumption slowdown, said Credit Suisse.

Edited by Aseem Thapliyal

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