Jubilant Foodworks up 2% after Coca-Cola India picks stake in associate firm. What does it mean for the stock?
Jubilant FoodWorks share price: Coca-Cola India has entered into a share subscription agreement with Hashtag Loyalty, which has raised the capital at a pre-money valuation of Rs 104.68 crore, the company reported through an official filing.
Jubilant FoodWorks share price: Shares of Jubilant FoodWorks, the owner of pizza chain Domino's and Dunkin' Donuts, traded over 2 per cent higher in the morning trade on NSE after Coca-Cola India entered the Securities Subscription Agreement with Hashtag Loyalty, an associate company of Jubilant FoodWorks.
Coca-Cola India has entered into a share subscription agreement with Hashtag Loyalty, which has raised the capital at a pre-money valuation of Rs 104.68 crore, the company reported through an official filing.
“This is to inform that Hashtag Loyalty Private Limited (“Hashtag”), an associate of Jubilant FoodWorks Limited (“Company”) has entered into a Securities Subscription Agreement dated April 17, 2023, with Coca-Cola India Private Limited (“New Investor”) pursuant to which the New Investor has acquired 15% stake (on a fully diluted basis) in Hashtag (“Transaction”). Accordingly, the Company’s stake in Hashtag has reduced from 35% to 29.75% (on a fully diluted basis). Hashtag has raised the capital at a pre-money valuation of Rs 104.68 crore,” the regulatory filing read.
Last seen, the stock traded at Rs 440.95 apiece, which was over 2 per cent on the upside, on NSE and on BSE the shares traded at Rs 440.95 per share.
What do analysts suggest?
Phillip Capital has maintained a ‘Neutral’ rating on Jubilant Foods for a target price of Rs 500. The brokerage expects aggressive store expansion by its peers, who have recently raised funds from IPO and have a much leaner balance sheet will certainly intensify competition.
Nirmal Bang has given a ‘buy’ call on Jubilant FoodWorks for a target price of Rs 560 apiece. The brokerage believes Jubilant FoodWork’s aggression in diversifying its cuisine/brand/format portfolio will serve as pillars for maintaining its dominant position in the overall QSR space beyond the next couple of years and help it in achieving its ambition of transforming itself into a diversified QSR powerhouse, with tech being the backbone.
Jubilant share price history
Year to date (YTD), the stock has declined over 12 per cent as compared to the headline index Nifty50’s dip of nearly 3 per cent.
In the past six months, the stock has declined over 26 per cent against Nifty50’s rise of 1.01 per cent.
The stock made a 52-week high of Rs 652.35 on October 6, 2022, and a 52-week low of Rs 412.1 on March 20, 2023, indicating that at the current levels, the stock is trading 7 per cent above its 52-week low and 32.4 per cent below its 52-week high.
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