Jubilant Food Works share: Food service company Jubilant Foodworks received approval of its board to set up a subsidiary to run Domino's Pizza business in Nepal, the company said on Monday, November 21. After that, investor sentiment turned positive and stock rose almost 1 per cent in the afternoon trade.

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As of 1:50 pm on NSE, the stock quoted at Rs 541.10 apiece, which was up by 0.83 per cent, and On BSE, the stock traded at Rs 541.60 apiece.

Citi has maintained Buy rating with a target price of Rs 714 apiece.

Citi is positive on Domino’s and the new format's opportunity in India. The brokerage firm believes that store expansions will likely be slow and gradual, given the relatively small population and per capita income of Nepal. 

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Jubilant Foodworks’ expansion plans:

Food service company is aiming to expand its business in Nepal and will set up a subsidiary to run Domino's Pizza.

“Pursuant to Regulation 30 of the Listing Regulations, we wish to inform that the Board of Directors of Jubilant FoodWorks International Luxembourg, a step down wholly owned subsidiary of the Company on November 21, 2022 has inter-alia approved incorporation of a wholly owned subsidiary company in Nepal,” the company filing read. 

The company has said that they have not decided the name of the subsidiary yet, "Nepal Subsidiary shall have the exclusive right to develop and operate Domino's Pizza stores in the territory of Nepal," the filing said.

“It is proposed to make an initial capital contribution of sixty million Nepalese rupees (NPR 60,000,000) [equivalent to INR 37,002,000/- as per exchange rate on November 20, 2022],” the filing further informed. 

Jubilant Foodworks International Luxembourg will have 100 per cent share capital of Nepal Subsidiary, “100% share capital of Nepal Subsidiary shall be held by Jubilant FoodWorks International Luxembourg, step down wholly owned subsidiary of the Company,” the filing stated. 

Jubilant FoodWorks Q2 Result:

Jubilant FoodWorks reported a 9.76 per cent increase in its consolidated net profit at Rs 131.52 crore for the second quarter ended on September 30, 2022.

The company had posted a net profit of Rs 119.82 crore in the July-September quarter a year ago.

Its revenue from operations during the quarter under review was at Rs 1,301.48 crore, up 16.6 per cent, as against Rs 1,116.18 crore of the corresponding period a year ago.

"The increase in revenue was driven by Like-for-Like growth of 8.4 per cent and healthy performance of new stores. Dine-in and Takeaway channels combined witnessed strong year-on-year growth, while the Delivery channel registered handsome growth on a high base," said JFL in its earnings statement.

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