Jubilant Foodworks - Buying In-The-Money Options: ICICI Direct

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Direct Report.We believe that Jubilant Foodworks Ltd.’s recent acquisition of stakes in DP Eurasia (DPEU) and Barbeque Nation (BN) as well as the investments in new ventures (Hong’s Kitchen and Ekdum!) are steps in the right direction.We like this utilisation of cash on balance sheet (Rs8.4 billion as of Sep 2020) to buy potentially in-the-money options. Some investors believe that the stakes in DPEU and BN are likely for trading purposes; however, we believe it’s strategic.Furthermore, we reckon there can be structural benefits –(1) turnaround of DPEU (replicating India execution) and(2) better dine-in experience in India ventures (using learnings from BN).That said, our biggest concern is limited management bandwidth to handle such diverse, multiple opportunities along with the expansion of the core (Domino’s India), which in itself has the potential to be 3X by FY2030..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.

Jubilant Foodworks - Buying In-The-Money Options: ICICI Direct

Jubilant Foodworks - Buying In-The-Money Options: ICICI Direct

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