Jubilant hit by sales, discounts worries
Posted: Thu Jul 26, 2012 3:22 am
Shares in Jubilant Foodworks declined 3.6 per cent, despite a surge in quarterly net profit on lower margins that analysts attributed to slowing same-store sales and discounts.
The operator of Domino's pizza in India said on Wednesday its April-June net profit surged 39.7 per cent to Rs 32.35 crore from a year ago.
However, Kotak Institutional says gross margins fell 110 basis points in the April-June quarter from a year earlier, attributing it to "aggressive discounting."
The brokerage reiterated its "sell" rating on the stock, citing expectations for "weak" consumer demand in urban areas and continued price discounting.
visit: http://www.daygains.com for Equity Market Tips / Commodity Market Tips
The operator of Domino's pizza in India said on Wednesday its April-June net profit surged 39.7 per cent to Rs 32.35 crore from a year ago.
However, Kotak Institutional says gross margins fell 110 basis points in the April-June quarter from a year earlier, attributing it to "aggressive discounting."
The brokerage reiterated its "sell" rating on the stock, citing expectations for "weak" consumer demand in urban areas and continued price discounting.
visit: http://www.daygains.com for Equity Market Tips / Commodity Market Tips