India’s largest catering company plans to split its shares


Jubilant FoodWorks (NSE:JUBLFOOD), India’s largest foodservice provider, announced on Friday that an upcoming meeting of the company’s directors will deliberate on a new share split in the company.

Jubilant told the exchanges that its board of directors will meet on February 2 to review the company’s quarterly results and to consider a “proposal to change the capital of the company by subdividing/splitting the existing shares of the company having a value nominal of INR10 each, fully paid”.

The Uttar Pradesh-based company holds master franchise rights for Domino’s Pizza in India, Bangladesh, Sri Lanka and Nepal. It also holds the exclusive rights to operate Dunkin’ Donuts restaurants in the subcontinent, where it sells eggless donuts, in addition to holding the exclusive rights to operate Popeyes restaurants in India, Bangladesh, Nepal and in Bhutan.

The restaurateur has a market capitalization of around INR 516.8 billion ($6.97 billion) on the National Stock Exchange (NSE), where its shares have risen 43% over the past year to INR 3,923.

The analyst’s point of view

Jubilant FoodWorks is “progressing well in its transition to a multi-brand quick-service restaurant (QSR),” analysts at national brokerage Kotak Securities wrote in a Dec. 27 note to clients.

“We expect (the company) to accelerate the ramp-up of Popeyes & Hong’s Kitchen beginning in FY23E…We model the structural improvement in Domino’s revenue flow, associated operating leverage and store adds slightly higher,” they said, and also filed an ‘add’ recommendation for the company’s shares with a target price of INR 4,200.

The food and drink retailer rolled out its first local brand – Hong’s Kitchen – in the Chinese cuisine segment. He has also added Indian dishes like biryanis, kebabs and breads to his portfolio via the new Ekdum! Brand. The company also markets a range of ready-to-cook sauces under the “ChefBoss” brand.

The founders controlled 41.94% of the business in the quarter through September 2021.

Read more: WIPRO Reports Steady Earnings Growth in Seasonally Weak Quarter

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