Turkish lira's fall potential risk for India's Jubilant FoodWorks, CLSA says

Jubilant FoodWorks

20/03/2025 07:35

March 20 (Reuters) - ** Shares of Jubilant FoodWorks JUBI.NS fall as much as 2.73% to 620 rupees apiece

** Drop after CLSA says depreciation of Turkish lira is a potential risk for food service company

** Lira depreciated 5% on Wednesday and is down 8.5% YTD

** In early 2024 JUBI acquired DP Eurasia, which operates in Turkey, Azerbaijan and Georgia, and contributed 31% of JUBI's overall sales in December quarter

** JUBI's debt stands at 12.3 billion rupees ($142 million), of which 80% is payable from Turkish cashflow

** "Depreciation of the Lira would lead to additional interest cost burden for JUBI in repayment of debt taken to acquire DP Eurasia," says Aditya Soman, analyst at CLSA

** Average rating of 28 analysts tracking JUBI is "buy"; median TP is 700 rupees - data compiled by LSEG

** JUBI shares down 12.5% YTD vs 11% drop in midcap index .NIFMDCP100

($1 = 86.3825 Indian rupees)

 (Reporting by Bharath Rajeswaran in Bengaluru)

 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))