Jubilant FoodWorks launches biryani biz with “Ekdum!”; stk reaches record levels

Shares of Jubilant FoodWorks were up 4.4% and hit a new record high of Rs 2,793 on BSE on Thursday, after recording 8% in the last two trading days, after the company entered the biryani segment with a new brand ”. Ekdum! as part of its portfolio expansion.

The largest food service company in India on Wednesday announced it has entered Biryanis’ “most loved food space” with its brand new brand: Ekdum!

“Ekdum! Will offer the widest variety of biryani from all over India to choose from. Ekdum! Chefs have assembled a selection of twenty different curated biryani from various parts of India using authentic ingredients that enhance the unique flavors and distinctive tastes. associated with the region, “Jubilant FoodWorks said in a press release. READ HERE

Ekdum! it will have an affordable price, with biryani prices starting at Rs 99, offering customers an unbeatable value for money. Ekdum! it starts with three restaurants in Gurgaon for Delivery, Takeaway and Dine-In, with more restaurants scheduled to open at NCR in the coming months, he said.

Although an accurate estimate of the overall market size (dinner + delivery) is not available, analysts at Kotak Institutional Equity set the Biryani delivery market at Rs 3,000 crore.

Prima facie Kotak Institutional Equities find Ekdum prices! Interesting. He also believes that Biryani’s economy would likely be comparable to Domino’s once it reaches the critical scale; and this is the fundamental difference between Domino’s and Ekdum! would be the dynamics of the kitchen.

“Jubilant FoodWorks pushed structural improvements during the pandemic and morphed into a leaner execution engine. This, coupled with easing competitive intensity and net liquidity of over Rs 800 crore and a healthy OCF, puts the company in a favorable position, “they said in a statement dated December 17.

The model / platform, he says, is in place to accelerate store additions to 100-125 / year at Domino’s and 30-40 aggregates between HK and Ekdum! “We believe there is room for JUBI to increase aggression and investment,” he added with an “Add” valuation on the stock with a target price of Rs 2,700.

Jubilant FoodWorks has been the biggest success story in the Indian Quick Restaurant (QSR) business in terms of growth with its delivery-based business model. According to Motilal Oswal Financial Services offers the highest margin and best performance ratios among peers.

After Covid-19, the company’s long-term prospects look even brighter with a faster shift towards organized actors in the Indian food service industry, key domains of delivery and take-out that gain additional traction and greater use of technology by customers, which facilitates the growth of players like Jubilan FoodWorks. The introduction of shipping costs (without any negative feedback on ratings) and the closure of 105 less profitable stores are factors driving the improvement in structural margin, the brokerage firm said in a recent report.

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