Jubilant FoodWorks, Devyani, other QSR stocks jump as investors cheer commercial LPG rate cut

A majority of restaurant stocks rose on Thursday after state-run oil marketing companies announced a reduction in the retail prices of commercial LPG, or cooking gas, following a sharp increase a fortnight ago. LPG is commonly used as fuel by a host of businesses in the hospitality industry such as hotels, restaurants, eateries, bakeries, caterers, and institutional kitchens.

Jubilant FoodWorks (JUBLFOOD), Restaurant Brands (RBA), Devyani International (DEVYANI), Sapphire Foods (SAPPHIRE), Specialty Restaurants (SPECIALITY) and Coffee Day Enterprises (COFFEEDAY) shares enjoyed gains to the tune of 0.3-2.2 per cent in late morning deals. Westlife Foodworld (WESTLIFE) shares bucked the trend, trading 0.6 per cent lower. Besides, a string of hotel stocks such as Chalet Hotels, HLV, TGB Banquets, and Oriental Hotels rose 1-2 per cent, while EIC, Mahindra Holidays, Lemon Tree, and Indian Hotels declined up to 0.9 per cent.

State-run oil marketing companies Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL), and Hindustan Petroleum Corporation (HINDPETRO) shares lowered the retail prices of commercial cooking gas by up to Rs 57.5 per cylinder in the four metros. 

After the latest revision, commercial LPG prices stood at Rs 1,775.5 per 19-KG cylinder in New Delhi, Rs 1,728 in Mumbai, Rs 1,885.5 in Kolkata, and Rs 1,942 in Chennai. The new prices took effect on Thursday, November 16. 

Prior to the downward revision, commercial LPG was sold at Rs 1,833 per cylinder in New Delhi, Rs 1,785.5 per cylinder in Mumbai, Rs 1,943 per cylinder in Kolkata, and Rs 1,999.5 per cylinder in Chennai.

The three PSU OMCs—which supply commercial LPG refills in 19-kilogram units—left the prices applicable to domestic LPG (sold in 14.2-kilogram  units) unchanged at existing levels.

Meanwhile, HPCL and BPCL shares hit 52-week highs, and Indian Oil almost took out its 52-week high amid an intraday rebound in the overall market, last seen trading around two per cent higher each.

Earlier in the day, HPCL shares rose as much as Rs 8.1, or 2.1 per cent, to a 52-week high of Rs 400.5 apiece while the Hindustan Petroleum Corporation stock gained by Rs 12.9, or 4.1 per cent, to log a 52-week peak of Rs 326.7 apiece, and Indian Oil Corporation (IOC) shares rose by as much as Rs 3.5, or 3.4 per cent, to Rs 105.1 to trade within Rs 2 of a 52-week high registered last week. 

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