fully detail analysis of jubilant footwork analysis by arpan jain

1. Jubilant Woodworks Analysis
By Arpan Jain
My Research methodology -(Q-G-L-P)
Every time I buy a stock we minutely examine it through our proprietary QGLP
methodology where
• Q-Quality (Quality of the business and management)
• G-Growth (Growth in earnings and sustained RoE)
• L- Longevity( Longevity of the competitive advantage or
economic moat of the business )
• P- Price( approach of buying a good business for a fair price rather
than buying a fair business for a good price.)

2. QUALITY
• Re-opened 1,000+ stores within 53 days (fastest in restoring) including 24 in last
quarter. Strong supply chain infrastructure in distribution centres has aided in
quick response to operational needs especially sanitization and food safety
• Key Focus areas – Strengthen channels, Innovation, Digital growth, expand new
brand portfolio and Optimize costs.
• Introduced delivery charges to recover the increased cost of doing business and
mitigate impact of spiraled discounts and help improve margins
• Shut-down 105 unprofitable Domino’s stores as a measure of cost control. Yet,
intending to open 100 new stores this year.
GROWTH
Overview of industry
• Quick Service Restaurants (QSR) market in India is projected to grow at a
CAGR of over 18% during 2021 - 2025 due to increasing urbanization, rapid
expansion in food delivery services, expanding young & working population,
growing number of dual-income families and rising disposable income in the
country.
• QSR market is broadly categorized into Food & Beverages segments with
Food category holding the majority share in the market. Nevertheless, the
Beverage segment is expected to grow at a faster rate in the coming years on
account of innovative offerings being launched in this product category.
• North India dominated the country's QSR market in 2019, and the region is
expected to maintain its dominance during the forecast period. Some of the
major market players operating in India QSR market include Jubilant
FoodWorks Limited, Coffee Day Global Limited, Hardcastle Restaurants Pvt.
Ltd. (HRPL), Sapphire Foods India Pvt Ltd, Devyani International Limited,
Connaught Plaza Restaurants Limited, Burger Kind India Pvt Ltd, Tata
Starbucks Private Limited, Subway System India Pvt Ltd, Burman Hospitality
Private Limited, among others. Few of the other leading players include Sierra
Nevada Restaurants Private Limited, Jumboking Foods Pvt. Ltd, Wow Momo
Foods Private Limited, Barista Coffee Company Limited and others.

3. • Domino's Pizza, McDonald's, Cafa Coffee Day, KFC (Kentucky Fried
Chicken), Pizza Hut, Burger King, Starbucks, Dunkin' Donuts, Costa Coffee,
Subway and Taco Bell are few of the popular frontline QSR brand operating in
the country.
• Online vs offline
After COVID-19 19 QSR industry shift business through online channel most
of the business come through online mode. Zomato and swiggi has excellent
growth in 2020 and further strong growth are possible
Longevity
1) STRONG TASTE AND PREFRENCE
2) STRONG BRANCH NETWORK ACROSS INDIA
3) NO FUTURE DESREPTION IN BUSINESS THIS BUSINESS WILL NOT DISRUPT IN FUTURE
BECAUSE HUMAN HABBIT NOT CHANGE LIKE ALCOHOL .
4) AGGRESSIVE MANAGEMENT TEAM
5) ZERO DEPT
6) OMNI CHANEL STRATAGY
7) AFTER COVID 19 QSR GET BOOM BECABUES OF SAFETY STANDARD
PRICE
PRICE ARE EXPENCIVE .STOCK TRADED AT 122 P/E . COMPANY SHOW STRONG
RECOVERY DURING THIS PANDAMIC . THIS YEAR EARNING NOT GOOD BECAUSE OF
HEAVY DISCOUNT AND HIGH ADVERTISMENT CAST .BUT COMAPANY HAVE
COMPETITIVE ADVANTAGE IT WILL EASILY INCREASE ITS PRICE IN FUTURE SO
MARGIN WILL ALSO INCREASE IN UPCOMING QUARTER

4. IMPORTANT RATIO

5. Jublient foodworks limited
Jubilant FoodWorks Limited (JFL/Company) is part of the Jubilant Bhartiya Group and is one of the
India’s largest food service Company. The Company holds the master franchise rights for two
international brands, Domino’s Pizza and Dunkin' Donuts addressing two different food market
segments. The Company also launched its first homegrown brand – Hong’s Kitchen in Chinese
cuisine segment.
The Company currently operates more than 1,350 outlets for Domino’s Pizza, Dunkin' Donuts and
Hong's Kitchen and is a market leader in pizza segment. The Company has more than 30,000
brand ambassadors committed to deliver value to its customers.
MARKET SHARE
DOMINOZ PIZZA 77% OTHER 23%
LOCATION WISE
INCOME
INDIA 99% REST OF THE WORLD 1 %
930
1126
1177 1181
1279
1388
0
200
400
600
800
1000
1200
1400
1600
2015 2016 2017 2018 2019 2020
NUMBER OF RESTURENT
NUMBER OF RESTURENT

6. 25%
44%
51%
58%
73%
98%
0%
20%
40%
60%
80%
100%
120%
2015 2016 2017 2018 2019 2020
ONLINE ORDER GROWTH
ONLINE ORDER GROWTH
2093
2438
2583
3018
3563
3927
111 97 58
198
320 280
0
500
1000
1500
2000
2500
3000
3500
4000
4500
2015 2016 2017 2018 2019 2020
REVENUE AND NET PROFIT CR
SALES NET PROFIT

7. LEARNING FROM SHAREHOLDING PATTERN
1) HIGH PROMOTER HOLDING SHOWS THAT PROMOTOR HAVE EXCELLENT CONFIDENCE
IN THEIR BUSINESS
2) STRONG FII HOLDING ALSO SHOW THAT GOOD PERFORMANCE OF BUSINESS IN
FUTURE BECAUSE FII HAVE VERY SMART INVESTOR
3) INCRESING STAKE OF DII ALSO SHOWS STONG BUSINESS PERFORMANCE
SHARE HOLDING PATTERN
PROMOTER FII DII GOVERNMENT PUBLIC OTHER
0.05%
4.20% 5.50%
25.90%
4.10%
-60%
-70.00%
-60.00%
-50.00%
-40.00%
-30.00%
-20.00%
-10.00%
0.00%
10.00%
20.00%
30.00%
40.00%
2015 2016 2017 2018 2019 2020
SAME STORE SALES GROWTH
Series 1

8. 12%
11%
9%
15%
17%
20%
0%
5%
10%
15%
20%
25%
2015 2016 2017 2018 2019 2020
Margin
margin

9. TOP BRAND
The Company has the exclusive rights to develop and operate Domino's
Pizza Restaurants in India, Sri Lanka, Bangladesh and Nepal. The
Company launched its first Domino’s Pizza restaurant in Delhi in January
1996. The Company is the largest franchisee for Domino’s brand outside
U.S. At present, it operates in India, and through its subsidiary companies in
Sri Lanka and Bangladesh.
The Company has the exclusive rights to develop and operate
Dunkin' Donuts Restaurants in India. The Company launched first
Dunkin' restaurant in Delhi in April 2012. Dunkin serves wide variety of
donuts, coffee, beverages, sandwiches and other goods.
JFL marked its entry into the Chinese cuisine segment with the launch of
its first home-grown brand – Hong’s Kitchen. The Company launched first
restaurant in Gurugram in March 2019. The restaurant has young,
international-looking and trendy design inspired by the colours and the
hustle of Asian street markets.

10. NEW ENTRY IN FMCG MARKET
Jubilant FoodWorks Limited, the master franchisee of Domino's Pizza and Dunkin'
Donuts branded restaurants in India, on Thursday announced its entry into the
ready-to-cook sauces,
gravies, and pastes market
capitalizing on the
growing home-cooking
trend in India.
A range of Chinese and
Indian sauces and mixes
will be sold under the
ChefBoss brand starting
with Amazon nationally, Flipkart Supermart in the NCR, Mumbai and Bangalore
areas, and Milkbasket (NCR), the company said in a filing to the exchanges on
Thursday.
The brand will expand product availability by adding more e-commerce platforms
as well as retailing through supermarkets and hypermarkets.
While Indians prepare a large portion of their meals at home, over the years,
consumers have sought to include a range of western and asian dishes as part of
their meals consumed at home.
More experimentation, as well as search for convenience, has prompted several
brands such as Nestle (that sells a range of readymade spice mixes for preparing
dishes), Ching’s Secret, Fun Foods, as well as several niche brands to establish
their presence in the market.
Jubilant FoodWorks estimates the packaged ready-to-cook market for such
products at ₹500 crore.
More recently, covid—induced lockdowns have prompted households to look for
variety and convenient cooking formats as they rustle up more dishes at home.
The 'ChefBoss' range of sauces and pastes includes eight different products across
two cuisines—Indian and Chinese.
"We are delighted to enter the Indian FMCG segment with 'ChefBoss'. This brand
is based on our sound understanding of the Indian consumers' taste preferences and
our commitment to provide the best quality products," Shyam S. Bhartia,

11. Chairman, and Mr. Hari S. Bhartia, Co-Chairman, Jubilant FoodWorks Limited,
said in the statement. Our research
suggests that consumer now, more than
ever before, are looking to explore and
add new dishes to their cooking, they
said.
The range includes Hyderabadi Biryani
paste, Lucknowi Biryani paste, Makhani
gravy and Bhuna gravy, apart from
Chinese mixes such as Manchurian and Schezwan cooking sauces, a hot garlic
cooking sauce and a Honey Chilli stir fry sauce as well as dip.
The products are priced between ₹75 to ₹100 per pack.
"The demand for ready-to-cook food products has been increasing over the last few
years on account of busier lifestyles of consumers and their desire to explore
different cuisines at home. During Covid we have seen an acceleration of this trend
and therefore an exponential growth in demand for ready to cook products," said
Vikran Sabherwal, Senior Vice President, new business, Jubilant FoodWorks
Limited.