Shares of Jubilant FoodWorks hit a 52-week high of Rs 3,331.8, rising over four percent on Wednesday after the company reported more than a three-fold jump in its consolidated net profit for its March quarter.

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Jubilant FoodWorks, the master franchise holder for Domino’s Pizza, posted a net profit of Rs 105.30 crore in Q4FY21 as compared to Rs 32.53 crore in the same quarter last year.

Revenue from operations during the quarter rose 14.21 percent to Rs 1,037.85 crore from Rs 908.75 crore, YoY. Domino’s same-store-sales growth came in at 11.8 percent versus the CNBC-TV18 poll of 14-16 percent.

Here’s what brokerages have to say on the company’s Q4 earnings and stock:

JPMorgan

JPMorgan maintained an ‘overweight’ rating and raised the target price to Rs 3,425 per share from Rs 3,030 earlier. It stays overweight given medium-term growth prospects.

The positive growth supports premium multiples. The April/May 2021 revenue recovery rate was at 94.4 percent/87.7 percent YoY with June to be better. We like its strong on-ground execution capabilities supported by digital investments, while Popeyes to be a promising addition to the portfolio mix, it said.

Credit Suisse

The brokerage maintained a ‘neutral’ call due to stretched valuations. It has a target price of Rs 2,900 per share and cut the FY22 EPS estimate by three percent due to COVID-19 impact in Q1.

The margin upsides are unlikely hereon, a new format success is a key deliverable, the brokerage house said.

UBS

The growth drivers are in place, and execution will be the key. The portfolio expansion will drive the growth, UBS said. It has a ‘neutral’ call with a target of Rs 3,000 per share.

CLSA

CLSA maintained an ‘outperform’ rating and raised the target price to Rs 3,300 per share.

The earnings growth of six to nine percent is seen over FY22-23. The revamped management team is going to address growing business needs. The bold approach to capture food services opportunity makes the company a structural play, CLSA said.

Morgan Stanley

The brokerage has an ‘overweight’ call on the stock and a target price of Rs 3,236 per share. The management commentary is positive on scale-up potential, while we remain constructive on the company’s medium-term scaling strategy, it said.

Motilal Oswal

We cut our FY22E/FY23E EPS estimate by 12.5%/5.2% due to the lockdowns triggered by the second COVID wave impacting the dine-in business. Nevertheless, the company continues to show strong momentum in the delivery and takeaway channel. Expensive valuations (63.2x FY23E EPS) suggest that the upside seems to be fully captured in the price from a one-year perspective, Motilal Oswal said.

It maintained a ‘neutral’ rating with a target price of Rs 2,970 per share.

ICICI Securities

We increase our FY23 earnings estimates by five percent, modelling revenue/ EBITDA/ PAT CAGR of 28 percent/ 38 percent /74 percent over FY21-23E. The key downside risk is raw material costs turning inflationary, said ICICI Securities.

The brokerage maintained ‘add’ and raised the target price to Rs 3,500 per share from Rs 3,300 earlier.

At 12.30 pm, the shares of Jubilant FoodWorks were trading 2.99 percent higher at Rs 3,271 apiece on the BSE.

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