Jubilant breaks into top 100 market cap club
Jubilant FoodWorks that operates the Domino’s Pizza and Dunkin’ Donuts brands in India on Thursday said it has entered the list of top-100 companies in India by average market capitalization for the period between July to December 2020. Its ranking in 2017 was 229, Pratik Pota, Chief Executive Officer and Whole-time Director, Jubilant FoodWorks Limited, said via a tweet on Thursday, citing data from The Association of Mutual Funds in India (AMFI).Even on the BSE, the company that popularized the Domino’s Pizza chain in India—starting its maiden outlet in New Delhi in 1996—had a market cap of Rs36,694.65 crore on Thursday.Reliance Industries, followed by Tata Consultancy Services Ltd and private lender HDFC Bank Ltd are the top three stocks in BSE's listing of top 100 companies by market capitalization as of 14th January. Jubilant FoodWorks is the only food service company in the BSE ranking that sees other strong consumer-focused companies such as Hindustan Unilever Ltd, Titan Company Ltd.India’s food service market was severely impacted as the lockdown hit out-of-home consumption of prepared food. While home deliveries, that contribute significantly to Jubilant business, have been quick to recover, the dining-out market for the restaurant industry has been sluggish.However, investors have been bullish on the recovery in the food service market led by large, organized players and QSR chains with strong delivery networks such as McDonald’s, KFC, Domino’s, Pizza Hut etc. Smaller players, on the other hand, have also faced the brunt of the pandemic with permanent closures.More recently, Burger King made a strong debut on the stock markets with a listing turning the spotlight on a few but strong players in the organized food services market.More recently, Jubilant has firmed up its presence in the organized food services market—capturing a bigger share in varied cuisines. In late December it announced an investment of ₹92 crore for an equity stake of 10.76% in Barbeque Nation Hospitality Ltd that runs the popular Barbeque Nation chain of restaurant. In mid December, it entered with a biryani brand Ekdum! In a BSE filing it said that it has opened three restaurants in Gurgaon for delivery, takeaway and dine-in under the new brand Ekdum! which will also serve breads and kebabs.The company also operates Chinese-cuisines restaurants under the ‘Hong’s Kitchen’ brand. Last year, it also rolled out a ready-to-cook range of sauces, gravies, and pastes under ‘ChefBoss’ capitalizing on the growing trend of in-home cooking.In its September quarter earnings, Jubilant said that its sales momentum continued in October with revenues recovering to 96.2% of last year, driven by delivery channel growing by 16.3% and takeaway by 64.3%.The company had 1,264 Domino’s restaurants as of 30th September, 2020 across 281 cities; apart from 26 Dunkin’ Donuts restaurants. The company also has the exclusive rights to develop and operate Domino’s Pizza brand in India, Sri Lanka, Bangladesh and Nepal.A January report by Edelweiss Securities on India’s retail market said it expects a quarter-on-quarter recovery for Jubilant FoodWorks’ business driven by increasing in-home consumption and pick-up in delivery channels.However, the brokerage still expects revenues to dip by 4% in Q3FY21.For the year ended March 31, 2020, Jubilant FoodWorks reported full-year income at Rs3,954.60 crore.Abneesh Roy at Edelweiss Securities said that Jubilant FoodWorks remains one of the best run QSR (chains) with structural drivers for market share expansion and new growth drivers apart from pizza.The promoters of HT Media Ltd, which publishes Mint, and Jubilant FoodWorks are closely related. There are, however, no promoter cross-holdings.