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Check Before You Invest : Jubilant FoodWorks Ltd

BSE: 533155 NSE: JUBLFOOD ISIN: INE797F01020
  |   Sector:  FMCG   |   Industry:  Consumer Food

Snapshot

Q.1 Which industry/sub-sector does Jubilant FoodWorks Ltd belong to?
Jubilant FoodWorks Ltd belongs to the FMCG sector, operating specifically within the Consumer Food segment.
Q.2 Is Jubilant FoodWorks Ltd a good quality company?
Jubilant FoodWorks Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Jubilant FoodWorks Ltd undervalued or overvalued?
Jubilant FoodWorks Ltd appears Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 114.55 123.93
Price to Book 11.97 17.15
Price to Sales 4.19 7.19
EV to EBITDA 20.62 31.52
Q.4 Is Jubilant FoodWorks Ltd a good buy now?
Jubilant FoodWorks Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Jubilant FoodWorks Ltd?
Jubilant FoodWorks Ltd revenue growth is 14.3% for FY-2025, which is above its 5-year CAGR of 9.46%, indicating faster growth.

Q.2 Gross Profit margin of Jubilant FoodWorks Ltd?
Jubilant FoodWorks Ltd Gross profit margin which is the profit after deduction of direct costs, is 15.7% for FY-2025, which is below its 5-year median of 19.9%, indicating decreasing margins.

Q.3 Operating Profit Margin of Jubilant FoodWorks Ltd?
Jubilant FoodWorks Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 19.58% for FY-2025, which is below its 5-year median of 22.95% indicating decreasing margins.

Q.4 Net Profit Margin of Jubilant FoodWorks Ltd?
Jubilant FoodWorks Ltd Net Profit Margin is 3.18% for FY-2025, is below its 5-year median of 6.99%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 15.7 19.9
Operating Profit Margin (%) 19.58 22.95
Net Profit Margin (%) 3.18 6.99

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Jubilant FoodWorks Ltd?
Jubilant FoodWorks Ltd Return on Asset is 2.73%, which is below its 5-year historical median of 5.54%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Jubilant FoodWorks Ltd?
Jubilant FoodWorks Ltd Return on capital employed is 20.77% for FY-2025, which is below its 5-year historical median of 32.66%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.7 Return on Equity (ROE) of Jubilant FoodWorks Ltd?
Jubilant FoodWorks Ltd Return on equity is 8.79% for FY-2025, which is below its 5-year historical median of 17.03%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Jubilant FoodWorks Ltd?
Jubilant FoodWorks Ltd Cash conversion cycle is -19 days, above its 5-year historical median of -36 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.86 0.86
ROE (%) 8.79 17.03
ROCE (%) 20.77 32.66
Cash Conversion Cycle -19 days -36 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Jubilant FoodWorks Ltd?
Jubilant FoodWorks Ltd Debt-to-Equity ratio is 0.15, which is lower the industry average of 0.49, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Jubilant FoodWorks Ltd?
Jubilant FoodWorks Ltd Debt to cash flow from operations is 0.27, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Jubilant FoodWorks Ltd?

Q.1 Promoter shareholding and pledge status of Jubilant FoodWorks Ltd?
Promoters hold 40.27% of the Jubilant FoodWorks Ltd, with 1.35% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Jubilant FoodWorks Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Jubilant FoodWorks Ltd vs industry peers?
Jubilant FoodWorks Ltd revenue CAGR is 9.46%, compared to the industry median CAGR of 7.03%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 14.3 7
Gross Profit Growth (%) 6.5 13.3
Operating Profit Growth (%) 7.9 12.6
Net Profit Growth (%) -17.1 20.7
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.86 1.2
ROE (%) 8.79 7.22
ROCE (%) 20.77 11.34
Cash Conversion Cycle (days) -19.42 48

Valuation & price assessment

Q.1 Stock return of Jubilant FoodWorks Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 14.6% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
14.6% -6.3% -2.3% -35.2%
Q.2 Valuation ratios of Jubilant FoodWorks Ltd vs historical?
The current P/E ratio of 114.55 is lower than its historical median of 123.93, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 114.55 123.93 26.55
Price to Book 11.97 17.15 2.53
Price to Sales 4.19 7.19 1.43
EV to EBITDA 20.62 31.52 14.38

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