The Indian restaurant industry is projected to reach $95.75 billion by 2025, growing at a CAGR of 10.3 percent. The sector, with over 5,00,000 restaurants, is expected to create 15.3 million jobs. Online food services will double to $13 billion, reflecting changing consumer preferences and increased discretionary spending.
With a market capitalization of Rs. 18,642.85 crore, on Thursday, the shares of Devyani International Ltd touched a day’s high of Rs. 155.35 which is 1.2 percent higher than the previous closing price of Rs. 153.50 apiece.
Brokrage Reccomdation:-
Macquire, one of the globally reputed brokerages firms, has an ‘Outperform’ call on the stock with a target price of Rs. 230 apiece, indicating a potential upside of 49.83 percent from Wednesday’s closing price of Rs. 153.50 per share.
Brokerage rational:-
As per Macquire with Devyani International, it expects the stock to double by FY28, driven by a 10 to 11 percent growth in same-store sales, which will improve margins. Apart from a weak near-term outlook, Macquarie is positive on the company, while citing potential restaurant demand increases from proposed tax reductions and growth in KFC India, Thailand, and other brands.
Financial performance:-
The company’s revenue surged 53.52 percent, increasing from Rs. 843.13 crore in Q3FY24 to Rs. 1,294 crore in Q3FY25. However, the company turned from a net profit of Rs. 5.07 crore to a loss of Rs. 7.64 crore in the same period.
Revenue Segment & Geographical Store Count:-
The company recognizes its operational revenue under Food and Beverages as its sole segment. Devyani has 689 KFC stores, 644 Pizza Hut Stores, 209 Costa Coffee Stores, 94 Vaango Stores, and 22 other stores, totalling 1,658 stores in India, followed by 40 stores of KFC in Nigeria, 29 stores of KFC & Pizza Hut in Nepal and 305 stores of KFC in Thailand as of 31st December 2024.
Delhi NCR dominates the store count with 272 stores, followed by 174 stores in Bengaluru, 103 stores in Hyderabad, 91 stores in Kolkata, and 81 stores in Other Non-Metro Cities as of Q3FY25.
Company profile:-
Devyani International Limited, founded in 1991 and based in Gurugram, India, is a leading operator of quick-service restaurants. It is the largest franchisee for Yum Brands in India, managing KFC, Pizza Hut, and Costa Coffee. The company also operates Vaango and Food Street brands, with a presence across India, Nepal, Nigeria, and Thailand.
Written by Santhosh S
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