Business insights:

JUBI was expected to pay taxes at a rate of ~34% for FY20 and FY21. However, the recent cut in corporate tax to 25.2% comes in as a big boost to JUBI, adding ~13% to its PAT.

This advantage is likely to last at least for the next few years because of its delivery based model and significantly higher scale compared to others.

In fact, sales and the PBT margin will continue to be much higher, fortifying its competitive positioning year after year (~INR450-500m PAT increase each year ceteris paribus).

JUBI is well placed on (1) a relative basis (v/s peers) in categories where the company operates and (2) absolute profit and savings v/s peers as Yum Brands and Burger King do not make money at the PBT level in India, while Westlife has turned profitable only in FY19 and its absolute profit is very small.

Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.

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