Devyani International has been a stable and consistent performer on the bourses since its listing in August last year. The shares of the Yum! Brands’ largest franchise in India gave a listing gain of 31.67% on its opening date. Since then they have climbed 37.8% more and were trading at ₹ 161.40 as of 12:00 IST.
The quick-service restaurants (QSR) chain operates 391 Pizza Hut outlets, 339 KFC stores, 50 Costa Coffee stores in India and 20 stores of other brands from international locations.
According to Angel One Research, the QSR industry is projected to grow at a CAGR of 23% over the FY20-25 period. Factoring in this, Devyani International may add 200 stores per annum to drive strong revenue growth.
Recently it changed its strategy to focus on smaller and delivery focused outlets which would lower the CAPEX requirement. This and better store-level economics would boost the operating margin going forward. The analysts at the brokerage firm expect the company to record solid top-line growth.
It ended fiscal year 2021-22 with a total comprehensive income of ₹ 169 crores on revenues of ₹ 2,084 crores against a net loss of ₹ 58 crores in the previous year.
Angel One has given a target price of ₹219 which is an upside of 35% over the current trading price of ₹ 161.40 as of 12:00 IST. Devyani International touched its 52-week high of ₹ 199 on December 10, 2021. The stock hit a 52-week low of ₹ 108 in August itself last year.
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. 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.
