Recent Price Movement and Market Context
On the trading day, Jubilant Foodworks touched an intraday low of Rs.564.4, representing a fall of 2.25% from its previous close. The stock's day change registered at -1.56%, underperforming the leisure services sector by 0.65%. This decline comes as the broader Sensex index also faced downward pressure, closing 299 points lower at 84,726.61, a 0.57% decrease from the previous session. Despite the Sensex trading above its 50-day moving average and maintaining a position 1.69% below its 52-week high of 86,159.02, Jubilant Foodworks has diverged from this trend.
Jubilant Foodworks is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning indicates a sustained period of price weakness relative to its recent historical performance.
Performance Over the Past Year
Over the last 12 months, Jubilant Foodworks has recorded a return of -17.20%, contrasting with the Sensex’s positive return of 3.64% during the same period. The stock’s 52-week high was Rs.796.75, highlighting the extent of the recent price decline. This underperformance extends beyond the one-year horizon, with the stock also lagging behind the BSE500 index over the past three years, one year, and three months.
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Valuation and Profitability Metrics
Jubilant Foodworks’ return on capital employed (ROCE) stands at 12.7%, indicating a moderate level of capital efficiency. The company’s enterprise value to capital employed ratio is 6.5, suggesting a relatively expensive valuation compared to some peers. Despite this, the stock is trading at a discount relative to the average historical valuations of its sector counterparts.
Profitability has shown notable growth, with profits rising by 32.2% over the past year. However, the price-to-earnings-to-growth (PEG) ratio is 3.7, reflecting a valuation that factors in expected growth but may be considered elevated by some market participants.
Long-Term Growth and Financial Health
Jubilant Foodworks has demonstrated healthy long-term growth trends. Net sales have expanded at an annual rate of 22.69%, while operating profit has grown at 24.16% annually. The company’s management efficiency is reflected in a higher ROCE of 15.84% in recent assessments, underscoring effective utilisation of capital resources.
Recent quarterly results for September 2025 reveal an operating profit to interest ratio of 4.50 times, the highest recorded, indicating strong coverage of interest expenses. The profit after tax (PAT) for the quarter was Rs.127.03 crore, representing a growth of 94.7% compared to the previous four-quarter average. Operating cash flow for the year reached Rs.1,205.44 crore, marking a peak in cash generation capacity.
Sector Position and Market Capitalisation
With a market capitalisation of Rs.38,109 crore, Jubilant Foodworks is the second largest company in the leisure services sector, trailing only Page Industries. The company accounts for 23.30% of the sector’s total market capitalisation. Its annual sales of Rs.8,854.95 crore represent 21.37% of the industry’s total revenue, highlighting its significant presence within the sector.
Shareholding and Institutional Interest
Institutional investors hold a substantial 53.35% stake in Jubilant Foodworks. These investors typically possess greater resources and analytical capabilities to assess company fundamentals, which can influence stock price movements and market perception.
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Summary of Recent Trends
The stock’s recent decline to Rs.564.4 marks a significant technical milestone, reaching its lowest level in the past 52 weeks. This movement contrasts with the broader market’s relative resilience, as the Sensex remains above key moving averages and close to its yearly highs. Jubilant Foodworks’ price action reflects a combination of valuation considerations, sector dynamics, and market sentiment.
While the company’s financial results indicate growth in sales, profits, and cash flow, the stock’s valuation metrics and relative performance have contributed to its subdued market performance. The divergence between operational growth and share price movement highlights the complex factors influencing investor behaviour and market pricing.
Conclusion
Jubilant Foodworks’ fall to a 52-week low of Rs.564.4 underscores the challenges faced by the stock in aligning market valuation with its financial fundamentals. The stock’s position below all major moving averages and its underperformance relative to the Sensex and sector peers reflect ongoing market pressures. Investors and market watchers will continue to monitor the company’s financial metrics and sector developments as part of their broader analysis.
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