The shares of the largest operators of chain quick-service restaurants (QSRs) gained up to 7 percent after the company announced the acquisition of a controlling stake in Restaurants Development Co., Ltd. (‘RD’) Thailand.
With a market capitalization of Rs 23,303.22 Crores, The shares of Devyani International Ltd were trading at Rs 193.00 a share, an increase of 5.29 percent from the previous closing price of Rs 183.30 a share.
According to the company filing, Devyani International Ltd signed a share purchase agreement and other documents for the acquisition of the controlling stake in Restaurants Development Co., Ltd. (‘RD’) to enter the Quick Service Restaurants market in Thailand.
RD operates as of September 2023, 274 KFC restaurants across Thailand and employs more than 4,500 people. After receiving all customary regulatory and other approvals, as may be necessary for the transaction, this agreement is anticipated to be finalized on or before March 31, 2024.
Thailand has attractive Market Dynamics with a 70 Mn population and with PPP per capita of USD 21,150. The country has a strong urbanization at 50 percent expected to de 60 percent in 10 years.
DIL intends to create synergies between its delivery services and stores and enhance delivery performance. To take advantage of the expanding online delivery market, the company also plans to open more delivery-only Pizza Hut and KFC locations and increase its cooperation with delivery aggregators.
Devyani International Ltd’s revenue increased by 9 percent from Rs 747 Crore in Q2FY23 to 819 Crore in Q2FY24. During the same period, net profits decreased by 36 percent from Rs 57 Crore to Rs 36 Crore.
Devyani International Limited (DIL) is the biggest Yum Brands franchisee in India and one of the biggest quick service restaurant (QSR) chains in the country.
Written by:- Abhishek Singh
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.
