CLSA on Jubilant Foodworks shares target price – Jubilant Foodworks shares: 30% downside? Why falling Turkish Lira has made CLSA a worried lot
Overseas brokerage firm CLSA has highlighted its concerns on Jubilant Foodworks Ltd over potential financial risks stemming from the sharp depreciation of the Turkish Lira. The decline in the Turkish currency could increase the company’s debt repayment burden and impact its profitability. Some media reports claim that CLSA has downgraded the stock to ‘hold’ and see up to 30 per cent correction in it.
In early 2024, Jubilant FoodWorks had acquired DP Eurasia, the master franchisee of Domino’s Pizza in Turkey, Azerbaijan, and Georgia, in early 2024. The acquired entity contributed 31 per cent of the group’s system sales in Q3FY25, making its financial performance a key factor for Jubilant.
But the Turkish Lira’s continued weakness…
