Pizza, Beer Emerge Winners in India as World Cup Follows Cricket
(Bloomberg) -- Irrespective of who wins the 2018 FIFA World Cup, pizza and beer makers in India have emerged as top scorers.
The World Cup, which began weeks after the Indian Premier League cricket season ended in May, has prolonged the dream run for Jubilant Foodworks Ltd., which operates the local franchise of Domino’s Pizza Inc., and Kingfisher beer owner United Breweries Ltd.
Jubilant has gained 19 percent since April to a record, extending a rally that’s tripled the company’s market value over the past year. The stock is rated a buy by 70 percent of the 32 analysts tracking it, data compiled by Bloomberg show.
“The long sporting season is boosting sales of pizza and alcoholic beverages,” Rajendra Wadher, director at PRB Securities Ltd., said by phone. “India’s young population with high disposable incomes are turning to social drinking and fast food. Occupancy at restaurants is higher than usual during the matches.”
Brokerage Equirus Securities Pvt. in a note shared Tuesday maintained its “add” rating on Jubilant and raised the price target by 11 percent to 3,034 rupees.
“Though we are at the initial stage of FIFA 2018 World Cup, early signs indicate that demand during match timings have witnessed some uptick,” analysts Manoj Gori and Dhaval Dama wrote in the note. “As the tournament progresses, the number of orders is expected to improve significantly.”
United Breweries has gained over 25 percent since April, reaching an all-time high on June 12. The company controls 39.2 percent of the market followed by Budweiser parent Anheuser-Busch InBev NV and Carlsberg A/S.
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