Jubilant Food Works Q2 EPS up 58% and yet severe correction at the counter
Jubilant Food works has reported excellents results for the quarter ended on 3oth September 2021 with consolidated revenue of Rs 1116 crore in Q2FY22, against Rs 816 crore in
Q2FY21, up 37 %, aided by strong all round performance across business segments.
Consolidated Profit After Tax for Q2FY22 stood at Rs 120 crore, Vs Rs 76 crore in Q2FY21,
up 57.89 %, on account of growth in revenue and improvement in margins.
During the quarter, the company has earned operating profit of Rs. 287 crore as compared Rs. 212 in the Q1 2122 and Rs. 216 crore in quarter 1 of 2021.
The Earning per share has improved to Rs. 9.11 as against Rs. 5.76 in the second of the previour year, up by 58 %
Editorial comments : Subsequent to the announcement of the Q 2 results, the scrip sharply corrected to Rs. 3953 down by Rs. 377 over the previous close. Ever after this sharp correction, the scrip is currently traded at Price to book value (PBV) ratio of 36.44 which suggests very costly valuations. The market men fear short term correction may continue at this counter. However , the high growth rate expected for QSR business, may push the scrip to new high, once the correction is over.