Dolat Capital: Jubilant Foodworks - Increased Focus On Cost Control; Short-Term Hiccups Post Covid-19

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.In its Annual report FY20, Jubilant Foodworks Ltd. continues to emphasize its five-pillar growth strategy -1) fortress Domino’s in India, 2) elevate customer experienc e 3) sustained technology investments 4) build portfolio of brands 5) focus on international.With a robust business model, efficient supply chain, large network, strong reputation for quality, hygiene and value, we expect Jubilant Foodworks to recover faster than peers in the near term.During FY20, gross margins contracted 20 basis points to 75% due to high inflation in dairy prices. The company expects milk and cheese prices to soften mainly due to increased supply.The company is focusing on converting manpower from fixed full/part timers to flexi timers. It is making good progess in rent negotiations and invoked the force majeure clause in several locations.Moreover, it is also rationalizing selling general and administrative expenses, logistics and warehousing costs. We believe that these measures should help Jubilant Foodworks maintain Ebitda margin plus 20%.During the Covid-19 outbreak, the company took several initiatives to ensure business continuity. Domino’s Pizza introduced Zero Contact Delivery to ensure the safety of both customers and the delivery staff.It plans to launch Zero Contact Dine-in soon. The Company has partnered with FMCG majors to launch ‘Domino’s Essentials’ for delivering grocery essentials..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Dolat Capital: Jubilant Foodworks - Increased Focus On Cost Control; Short-Term Hiccups Post Covid-19

Jubilant Foodworks has partnered with FMCG majors to launch ‘Domino’s Essentials’ for delivering grocery essentials.

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