Dominos pizza-maker Jubilant Foodworks tumbles as Street wary of margin pressure hurting profits
While Citi has maintained a buy on Jubilant Food, it has cut the target to Rs 714 from Rs 725. Goldman Sachs has maintained a Neutral rating but cut the target to Rs 600 from 630. JP Morgan too has maintained Neutral rating on with a fresh target of Rs 623, down by Rs 5 from its previous target
Jubilant Foodworks shares fell sharply on Wednesday after several brokerages cut targets on the counter despite an in-line September quarter results posted by the company on Tuesday. Top brokerages including Citi, Goldman Sachs and JP Morgan have revised their targets downwards.
The scrip was trading at Rs 578.30 on the NSE and was down by Rs 34.40 or 5.61 per cent apiece.
Technical View
Market expert Simi Bhaumik recommends a Sell in Jubilant Food estimating a further fall over the next 1-2 trading session. She said that the stock has seen a breakdown from level of Rs 590. She has given three targets at Rs 570, Rs 557 and Rs 545 with a stop loss of Rs 600.
Echoing similar sentiments, expert Ambarish Baliga suggested an exit in this stock. He sees a further 12% downside.
(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)
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