The company which operates the largest franchisee of Quick Service Restaurant in India gained 5.5% to ₹175 per share on Wednesday after Yum Restaurant sold its entire stake via block deal.
At 12:05 p.m., Devyani International Ltd shares were trading at ₹169 per share, up 2.05 % on the National Stock Exchange from the previous close price. The company has a market capitalization of ₹20,397 crore.
As per the Moneycontrol report, Yum Restaurant India Private Ltd sold its entire 4.4 percent stake, or 5.3 crore equity shares in the company, for a transaction valued at ₹871 crore. The sale of the stake occurred at a floor price of ₹164 per share, representing a slight discount of 1.2 percent compared to the closing price on Tuesday.
Devyani International Limited (DIL) is the largest franchisee of Yum Brands in India and is among the largest operators of chain quick service restaurants (QSR) in India. In addition, DIL is a franchisee for the Costa Coffee brand and stores in India.
The company has experienced robust annual revenue growth of 6.6%, increasing from ₹790.60 crore in Q3FY23 to ₹843.13 crore in Q3FY24. However, during the corresponding period, the company’s net profit witnessed a significant decline of 93%, dropping from ₹71.04 crore to ₹5.07 crore.
In the December quarter, the company achieved a Gross Margin of 70.8%, showing a slight improvement from 70.2% in the first nine months of FY23. Additionally, the company demonstrated consistent performance from its core brands, with KFC reaching ₹1,550 Cr (14.1% YoY growth), Pizza Hut at ₹547 Cr (3.2% YoY growth), and Costa at ₹107 Cr (55.2% YoY growth) on a 9M FY24 basis. As of December 2023, the company operates a total of 1,371 stores.
In the last six months, Devyani International Limited shares have gained 10% in a year and 42% in three years.
Written by Omkar Chitnis
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