In This Article:
Jubilant FoodWorks Limited’s (NSE:JUBLFOOD) latest earnings announcement in March 2018 suggested that the business benefited from a major tailwind, more than doubling its earnings from the prior year. Below is a brief commentary on my key takeaways on how market analysts perceive Jubilant FoodWorks’s earnings growth trajectory over the next few years and whether the future looks even brighter than the past. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings.
View our latest analysis for Jubilant FoodWorks
Market analysts’ prospects for the upcoming year seems optimistic, with earnings increasing by a significant 51.83%. This high growth in earnings is expected to continue, bringing the bottom line up to ₹4.46b by 2021.
Even though it’s helpful to understand the growth each year relative to today’s figure, it may be more beneficial to determine the rate at which the business is growing every year, on average. The pro of this approach is that it removes the impact of near term flucuations and accounts for the overarching direction of Jubilant FoodWorks’s earnings trajectory over time, which may be more relevant for long term investors. To calculate this rate, I’ve inserted a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 25.17%. This means, we can anticipate Jubilant FoodWorks will grow its earnings by 25.17% every year for the next few years.
Next Steps:
For Jubilant FoodWorks, I’ve compiled three fundamental factors you should further research:
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Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
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Valuation: What is JUBLFOOD worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether JUBLFOOD is currently mispriced by the market.
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Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of JUBLFOOD? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.