This company, which has its footprint in QSR segments and has notable chains such as KFC, Pizza Hut, Costa Coffee, etc, is in the initial stage to acquire another massive QSR chain (Biryani by Kilo) along with other brands like Goila Butter Chicken.
Price Movement
With a market capitalization of Rs 20,778 crore, the shares of Devyani International Ltd are currently trading at Rs 172.60, trading at a discount of 22 percent from its 52-week high of Rs 222.74. The stock has given a positive return of 5.8 percent in the last one year.
About the announcement
On 19 April 2025, Devyani International announced that they are in the initial stage of for acquisition of controlling equity stake in Sky Gate Hospitality Private Limited, operating restaurants under the brand “Biryani by Kilo” and other brands.
Founded by Kaushik Roy, Vishal Jindal, and Ritesh Sinha in 2015, Biryani by Kilo is an authentic Biryani & Kebab delivery chain offering freshly prepared biryanis to its consumers through a cloud kitchen model. Famous for their Khansama cooking tradition.
It has over 100 outlets PAN India serving delicacies to their customers. Its revenue has grown at a CAGR of 55 percent between FY19 and FY24, touching Rs 300 crore
Also read: Transformer stock hits 5% upper circuit after reporting 121% YoY increase in net profit
Brokerage Rationale
Emkay Global Financial Services has upgraded the stock to ‘Buy’ from ‘Add’, raising its target price by 16 percent to Rs 200 per share from its current market price of Rs 173 per share. The brokerage now values the stock at 30 times FY27 EBITDA, signifying an increase from 26 times earlier.
Emkay sees this as a strong entry point in the stock, citing strong acquisitions and decreasing losses, and is optimistic about the company’s strong management in the QSR chain.
About the Company
Devyani International Limited is a quick service restaurant (QSR) operator with operations in India and overseas markets such as Nepal and Nigeria. It is its core business to operate popular chains like KFC, Pizza Hut, and Costa Coffee in India. Outside India, it has operations of KFC, Pizza Hut, and others, and its other business segment consists of local brands like Vaango and The Food Street.
Written by Satyajeet Mukherjee
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