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Domino’s brand power, a delivery-first DNA: how Jubilant FoodWorks dishes out a hot P/E ratio

Since the market crash on March 23, the stock has not just recovered to pre-Covid levels, but also touched new highs. Based on historical earnings per share, it is currently trading at a P/E ratio of 115 times. But is Jubilant FoodWorks expensive valuation justified? The short answer is yes. There are some core strengths that set it apart.
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18 Sep 2020 10 Mins Read 0 comment
Riders delivering Domino's pizza Getty Images
Riders delivering Domino's pizza
'Order karna safe hai'. As many consumer-facing businesses, stuck in the closed lanes of lockdown, were looking for a way out to normalcy, Jubilant FoodWorks, which owns and operates Domino’s Pizza in India, knew how to get its customers back — an unambiguous assurance on safety. What followed was a digital campaign in July. Pizzas apart,
brand, and an efficient delivery system. But what it lacks for now is variety. Hong Kong Kitchen and ChefBoss are low-scale work in progress. This lack of variety could be the biggest downside risk for Jubilant FoodWorks once normalcy returns in a post-pandemic world. That’s one topping Jubilant should go for. ( Graphics by Mohammad Arshad)
'Order karna safe hai'. As many consumer-facing businesses, stuck in the closed lanes of lockdown, were looking for a way out to normalcy, Jubilant FoodWorks, which owns and operates Domino’s Pizza in India, knew how to get its customers back — an unambiguous assurance on safety. What followed was a digital campaign in July. Pizzas apart, brand, and an efficient delivery system. But what it lacks for now is variety. Hong Kong Kitchen and ChefBoss are low-scale work in progress. This lack of variety could be the biggest downside risk for Jubilant FoodWorks once normalcy returns in a post-pandemic world. That’s one topping Jubilant should go for. ( Graphics by Mohammad Arshad)

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