Singapore’s Temasek Holdings, through its subsidiary Dunearn Investment Mauritius, has sold 2.85% equity (344,30,150 shares) in Devyani International Limited at an average price of Rs 145.04 through a Bulk Deal. As of the December quarter, Temasek has held 5.88% stake in the company.
On the other hand, Franklin’s India Flexi Cap Fund has picked up about 0.5% stake in Devyani International through a bulk deal. The Fund has bought about 62 lakh shares in open market transactions for Rs 89 crores. The deal was executed at an average price of Rs 145 per share.
The company started its trading session today at Rs 142.05 and is currently trading at a price of Rs 141.50. The stock has moved down around 0.4 percent as compared to the previous closing price of Rs 142.05. In the last six months, the stock has underperformed by losing around 26 percent ranging from Rs 190.85 to the current price levels.
Devyani International Limited is a fast-growing and profitable player in the Indian retail Food & Beverage sector with presence in different space zones cutting across Indian subcontinent. The company currently has a visibility of 500+ outlets of Pizza Hut, KFC, Costa Coffee and many other brands. With such a distinguished track record and expertise in the QSR segment, Devyani International has launched its own brand Vaango – a world-class south Indian QSR chain offering authentic South Indian food in a genX ambience.
Having a quick look at the financials of the company, it can be observed that the revenues and net profits have shown an upward trend. Revenues moved up from Rs 747.42 crores in Q2 to Rs 790.6 crores in Q3. Net profits have shown a movement from Rs 56.84 crores in Q2 to Rs 71.04 crores in Q3.
The company’s profitability ratios are also exhibiting a positive picture with the generation of ROE of 39.06 percent in FY21-22. The ROCE figures have also shifted upwards from 14.78 percent in FY20-21 to 36.09 percent in FY21-22.
The debt to equity ratio of the company has substantially reduced marking it to be a good sign of dealing with uncertain expenses and fund requirements. The ratio went down from 4.12 in FY20-21 to 0.19 in FY21-22.
Promoters of the company hold a constant stake of 62.8 percent in the past four quarters. Whereas, the FIIs are in a positive trajectory with increasing stakes over the past three quarters. The most recent change being a stake of 8.3 percent in Q2 and 8.82 percent in Q3.
Written by Amit Madnani
Disclaimer
The content in this news article is not investment advice. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
