InvestorQ : I am holding Jubilant Foodworks in my portfolio and am worried as I understand that a large broker has downgraded the stock. What should I do now?
Sam Eswaran made post

I am holding Jubilant Foodworks in my portfolio and am worried as I understand that a large broker has downgraded the stock. What should I do now?

Answer
image
swati Bakhda answered.
2 years ago
Follow

In fact, Credit Suisse has downgraded the price target of Jubilant Foodworks from Rs.1350 to Rs.1200 and has also cut its rating on the stock from “Neutral” to “Underperform”. This was also the reason the stock has corrected in terms of price movement. The cut in price target comes in the light of the slowdown in consumption spending and due to weak demand coming from the slowdown in consumption. Quick service restaurant industry-which has the strongest correlation of its growth with the macroeconomic conditions in India, is likely to see same-store-sales growth further decelerate in the second half of the current financial year, said Credit Suisse.

What should be your strategy? Ideally, when same store sales are falling, Jubilant has never been a good stock. You must look to exit the stock for now and look to re-enter when the numbers actually see a turnaround at a future date.

5 Views