Jubilant FoodWorks tumbled 3.32% at Rs 575.95 at 11:55 IST on BSE after the company was elbowed out by Tata Coffee in striking an alliance with US coffee giant Starbucks ahead of Starbucks' India entry.
Meanwhile, the BSE Sensex was down 8.25 points, or 0.04%, to 19,174.57.
On BSE, 97,000 shares were traded in the counter as against an average daily volume of 3.45 lakh shares in the past one quarter.
The stock hit a high of Rs 597 and a low of Rs 571.60 so far during the day. The stock had hit a record high of Rs 670.70 on 1 December 2010 and a record low of Rs 161.60 on 8 February 2010. Shares of Jubilant Foodworks had debuted on 8 February 2010 at Rs 161.60, a premium of 11.44% over the initial public issue price Rs 145.
The stock had outperformed the market over the past one month till 13 January 2011, gaining 7.27% compared with the Sensex's 2.58% decline. The scrip had also outperformed the market in past one quarter, rising 13.08% as against 7.28% decline in the Sensex.
The mid-cap food-service company, which operates the Domino's Pizza stores in India, has an equity capital of Rs 64.46 crore. Face value per share is Rs 10.
Tata Coffee on Thursday, 13 January 2011, said it has entered into a non-binding memorandum of understanding with US coffee giant Starbucks, which runs over 16,000 stores worldwide, for supply of coffee beans and for coffee roasting facilities. The memorandum of understanding (MOU) with Starbucks also envisages discussions and evaluating appropriate opportunities across suitable businesses of associate Tata companies in the food and beverage categories, Tata Coffee said.
Besides Jubilant Foodworks, Starbucks was also reported to be in talks with the Future Group and Mukesh Ambani's Reliance Group earlier for an entry into India, but none of those discussions fructified.
Jubilant FoodWorks' net profit spurted 137.3% to Rs 18.44 crore on 67.1% increase in net sales to Rs 163.30 crore in Q2 September 2010 over Q2 September 2009.
Source CM
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