Shares of Jubilant Foodworks rose over 8 percent intraday on Wednesday after brokerage firms raised their price targets on the stock, given the company's better than expected earnings for the September quarter.

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At 2:15 pm, the share price was trading 7.4 percent higher to Rs 1,535 per share on the NSE, while in intraday, the shares jumped 8.07 percent at Rs 1.544.25.

Many brokerages remained positive on Jubilant Food's same-store sales growth (SSSG) of 4.9 percent. It's noteworthy that the SSSG of Jubilant rose despite the slowdown in discretionary spending by consumers.

A greater pace of store expansion and higher guidance for store addition reflect the management's confidence on demand as well as execution, said brokerage firm Kotak Institutional Equities said.

Morgan Stanley raised its price target on the stock by 8 percent to Rs 1,650 per share in view of the management's confidence over the long-term prospects of the foodservice sector.

Jubilant FoodWorks, which operates Domino's Pizza and Dunkin' Donuts chain in India, reported a 2.8 percent year-on-year decline in September quarter consolidated profit at Rs 73.4 crore due to one-time loss of Rs 12.5 crore. Consolidated revenue grew 12.2 percent YoY to Rs 998 crore.

At the operating level, consolidated earnings before interest, tax, depreciation, and amortization (EBITDA) jumped 59.9 percent YoY to Rs 234.1 crore and margin expanded 700 bps to 23.5 percent in Q2 FY20.

So far, 1.217 million shares of the company changed hands on NSE, higher than the three-month daily average volume of 1.152 million shares.

(Inputs from agencies)

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