Jubilant hits new all-time high on back of result expectations

Jubilant Foodworks, a master franchise of Domino’s Pizza and Dunkin Donuts brands, surged nearly 5.5 per cent on Friday at 12:00 hours, hitting a significant new all-time high.

The stock of Jubilant surged with expectation of posting positive topline and bottomline in its Q1FY19 earnings report. The stock gave a breakout of 8 days consolidation with a sizeable bullish candle.

Street estimates put Jubilant's net sales up at nearly 20 per cent YoY while nearly 4.5 per cent growth. EBITDA is expected to be robust at nearly 59 per cent YoY growth while remaining subdued in terms of QoQ performance. Finally, the company is forecasted to post nearly 99 per cent YoY growth, but QoQ is expected to stay marginally down at nearly 6 per cent.

The stock of Jubilant Foodworks broke its major resistance zone of 1,438-1,443 levels, prevailing at the peak levels since the start of July 2018. The stock also breached its Tick Average at 1,464 levels. The breakout was supported by 14-period RSI positive crossover at 56 levels with justifiable volumes which suggests momentum. In case, the stock sustains Friday’s momentum, it holds potential for some more upside in the coming sessions. The stock has been trading in an Upward sloping Channel pattern since the end of January 2018 and has on Friday hit above the Upper Channel line.